HSBC has announced an agreement to transfer its operations in South Africa to local lender FirstRand Bank Ltd, marking its complete exit from the country as part of a broader strategy to refocus on Asia.
The deal will involve transferring the branch’s clients, banking assets, and liabilities, ensuring that clients have continued access to banking services.
Additionally, HSBC has arranged for Absa Bank to provide its equities and securities finance clients with access to the South African market as it phases out all legal entities in the region.
Currently, HSBC’s South African operations function as a branch of its British unit, offering commercial and investment banking services without personal or retail banking, as detailed on its website.
Details regarding any financial terms involved in the agreements between HSBC and FirstRand, as well as Absa, were not disclosed by HSBC.
Entering South Africa in 1995, HSBC currently caters primarily to large corporations operating across the continent.
An earlier Bloomberg report indicated that bidders from Africa, China, and the United Arab Emirates have shown interest in HSBC’s South African operations.
Additionally, HSBC plans to divest its equities business in South Africa, as noted by Bloomberg.
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