This would end a presence of more than 50 years, and it represents a continuation of HSBC chief executive Stuart Gulliver’s worldwide retreat from markets where the banking group is not a significant player, the report stated.
HSBC’s Libyan representative office employs less than 10 people.
Operations in the region stopped in 2011during the Libyan civil war, but were restarted later that year.
An HSBC spokewoman would not comment on the report.
Last month HSBC announced that it was to sell a portfolio of its Swiss private banking assets worth $12.5bn (£7.3bn, €9.2bn) to Liechtenstein bank LGT Group Foundation, subject to regulatory approvals and expected to complete in the last quarter of 2014.
