HSBC says it has reached an agreement to transfer the business of its branch in South Africa to FirstRand Bank.
The transaction will include the transfer of the branch’s clients and banking assets and liabilities, and will provide transferred clients with continued access to banking services in
South Africa.
HSBC’s branch employees will also transfer to FRB as part of the agreement.
The transaction is expected to be completed in the fourth quarter of 2025, subject to regulatory and governmental approvals.
HSBC’s current international wholesale banking clients will continue to have connectivity through HSBC channels for their accounts in South Africa once they have transferred to FRB.
The transaction will also support HSBC’s global clients who require future access to corporate banking products and services in South Africa.
HSBC South Africa will continue to serve its branch clients as usual until the transfer of the business is completed. In addition, HSBC has agreed with Absa Bank and Absa Capital Securities to provide HSBC Bank’s global equities and securities finance clients with continued access to the South African market.
HSBC’s legal entities in the country will be wound down, whilst ensuring all regulatory and
customer obligations are met.
Colin Bell, chief executive officer, HSBC Bank plc and HSBC Europe, said: “Following a strategic review, we are pleased to have signed agreements with FRB and Absa. They both have extensive networks and are leading corporate and investment banks in the region. They will continue to provide clients with a broad offering in terms of service and products.”
HSBC is the most recent European bank to withdraw from South Africa after conducting strategic reviews.
In May 2024, BNP Paribas SA shut down its corporate and investment banking operations in South Africa.
Barclays and Standard Chartered have both reduced their presence in Africa, and Societe Generale SA is also decreasing its activities on the continent.
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