HSBC has agreed to divest its retail banking operations in Egypt to Emirates NBD Egypt. <\/p>\n
The agreement includes the assets and liabilities tied to HSBC Egypt’s full retail banking business. <\/p>\n
This covers retail loans, customer deposits and accounts, along with employees supporting the business being transferred. <\/p>\n
The deal is expected to close in the second half of 2027, pending regulatory clearance. <\/p>\n
HSBC said there will be no immediate change for retail customers in Egypt, and existing products and services will continue as usual during the process. <\/p>\n
The two banks will work together on the transition for staff and customers. <\/p>\n
For HSBC Group, the transaction is expected to result in an estimated pre-tax gain of about $300m. <\/p>\n
The bank said this would be recognised mainly when the deal completes and treated as a material notable item. <\/p>\n
HSBC expects the disposal to have an immaterial effect on the group’s common equity Tier 1 capital ratio. <\/p>\n
“Egypt remains an important market for HSBC with strong growth potential”, said the bank adding that it will continue to support its corporate and institutional banking clients in the country. <\/p>\n
The bank also said it remains focused on “two-way trade” and investment flows, supporting multinational companies in Egypt and domestic wholesale clients with international activities. <\/p>\n
The transaction follows a review of HSBC Egypt’s retail banking arm announced last year. <\/p>\n
It is part of a broader effort to simplify the group and concentrate on markets and business areas where it sees stronger competitive positioning and room for growth. <\/p>\n
The Egypt deal follows other disposals involving HSBC’s retail operations. <\/p>\n
Last week, HSBC Bank Australia agreed to sell<\/a> its Australian mortgage and personal lending portfolio to Blackstone, with those assets carrying a book value of around A$36bn ($25bn). <\/p>\n In June, Bloomberg reported, citing sources, that Emirates NBD was in discussions to acquire<\/a> HSBC’s operations in T\u00fcrkiye. <\/p>\n Earlier, in May, OCBC Indonesia signed an agreement<\/a> with PT Bank HSBC Indonesia to take over the assets and liabilities linked to HSBC Indonesia’s retail banking and wealth management business. <\/p>\n