The move is part of “its ongoing US strategic focus on commercial and corporate banking”. The UK/Hong Kong-listed banking group said HSBC Bank USA “remains committed to serving and further developing corporate banking relationships in Upstate New York”.

 In particular, the bank will continue to provide a full suite of international commercial banking offerings, including trade and cash management products and services through its four business centres in the region.

 The all-cash transaction is expected to close in early 2012, subject to regulatory approvals and other customary closing conditions.

 HSBC’s statement made no reference to private banking and wealth management services.

As at 31 May, the 195 branches held approximately $15.0 billion in deposits, $15.0 billion in gross assets including $2.8 billion in loans, and held $4.3 billion in assets under management.

"HSBC is committed to the US and leveraging our international network and skill-set, which are our competitive advantages. This transaction is part of the strategy outlined in our May 2011 Investor Day presentation to align our US business with our global network and meet the local and international needs of domestic and overseas clients," said Niall Booker, group managing director and chief executive of HSBC North America.

In addition to the sale of the retail branches to First Niagara, HSBC Bank USA has decided to consolidate approximately 13 branches located in Connecticut and New Jersey into nearby HSBC branches by the first quarter of 2012, subject to regulatory approval, HSBC said in a statement.

Over the weekend, media reports said that HSBC was likely to axe at least 10,000 jobs in the coming year, with the vast majority coming "outside the UK”. As of the time of going to press, however, no such announcement had been released.