HSBC reportedly considering sale of its South African business
HSBC Holdings is reportedly mulling the sale of its South African business to concentrate on Asian markets, according to Bloomberg.
HSBC is reportedly exploring the potential sale of its South African business
Bloomberg reports that banks from Africa, China, and the UAE are among the potential interested bidders for the bank’s South African unit, citing sources familiar with the matter.
The report adds that no deal is finalised or guaranteed, and the details of any potential agreements are still under discussion.
As stated on its website, HSBC’s “principal activities” in South Africa include providing “banking services to our corporate and wholesale clients, as well as a representative office for the Private Bank”.
HSBC has had a presence in South Africa since 1995 and now comprises “HSBC Bank plc Johannesburg Branch, which is a branch of HSBC Bank plc (incorporated in the United Kingdom), and HSBC Securities (South Africa) Pty Ltd.”
Last November, the company agreed to the sale of its retail and business banking units in Mauritius to Absa Group, with the acquisition completed in July this year.
HSBC has recently been divesting a number of its global operations, including the recent sale of its French retail banking business to Crédit Commercial de France (CCF) in January and the $550 million sale of its Argentine banking operations to Grupo Financiero Galicia in April.
Reports suggest that the moves will allow the company to focus more on its operations in Southeast Asia and China. HSBC recently acquired Citi’s retail wealth management portfolio in China last year and is also taking part in quantum-proofing cybersecurity trials with the Monetary Authority of Singapore.
HSBC recently announced that current CFO Georges Elhedery, formerly the bank’s regional CEO for the Middle East, North Africa, and Turkey, will succeed Noel Quinn as the group’s new CEO next month.
