HSBC has opened talks with investors regarding a possible listing of its UK business, according to the Financial Times.
The bank has asked investors if they would support such a move and has also held informal discussions at board level.
It is believed the bank plans to list a minority stake of up to 30 per cent in the UK retail and commercial banking business, which estimates say could generate a market capitalisation of around £20bn.
The news comes alongside plans to list by other UK banks including Lloyds Banking Group – which is preparing to float its TSB subsidiary next year – and Royal Bank of Scotland, which is planning a 2015 flotation of its Williams & Glyn unit.
The newspaper says the move by HSBC would help satisfy new requirements to ringfence retail and investment banking operations.