The two Hong Kong banking subsidiaries of HSBC Holdings, London, have formally terminated their card processing contract with First Data Corp.

Anticipating the event, First Data took an earnings charge in the second quarter and said it did not expect further losses.

David P. Bailis, executive vice president of First Data's card services group, said the company will continue to operate in Asia and to serve HSBC units other than Hongkong and Shanghai Banking Corp. and Hang Seng Bank.

"The HSBC group remains a valued client through its Marine Midland and Midland Bank subsidiaries and potentially in other markets around the world," Mr. Bailis said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.