HSBC on Friday said it was exploring the option of selling its Brazilian operation as part of the bank's ongoing bid to slash costs.

"HSBC confirms that it is exploring various strategic options for its operations in Brazil, including the potential sale thereof," the British lender said in a brief statement.

"At present no decision has been made to proceed with any transaction and HSBC will make a further statement if or when appropriate," it added.

The Brazilian unit of Spanish bank Santander has expressed an interest in the possible purchase of HSBC's assets in the Latin American country.

HSBC employs more than 21,000 staff in Brazil, where it runs 850 bank branches.