Multinational British lender HSBC Holdings has agreed to transfer its South African business to FirstRand and Absa in separate deals as it continues to pivot towards Asia.
- •The lender has agreed to sell its corporate branch unit to FirstRand in a bid to offer continued access to banking services in South Africa for transferred clients.
- •In a separate deal, HSBC agreed to transfer its South African global equities and securities business to Absa Bank withholding details of the transactions.
- •The transaction, which includes HSBC’s branch employees, is expected to be finalized in the fourth quarter of 2025 pending regulatory and government approvals.
“Following a strategic review, we are pleased to have signed agreements with FirstRand Bank and Absa,” Colin Bell, HSBC Bank plc and HSBC Europe CEO, said.
The bank first opened a South African office in 1995 and sought to capture the increasing value of global trade with Africa. In its 29 years in the country, HSBC’s high net worth clientele ranged mainly from subsidiaries of multinationals opening in South Africa to large domestic corporations. Its business in the country focused only on corporate and investment clients.
“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,” Bell added.
Why HSBC has been Retreating from African Markets
This move is in line with the lender’s strategy to slash business in diverse parts of the world to boost business in Asia. HSBC recently sold its banking business in Mauritius to Absa Bank in the exit plan aiming at more lucrative opportunities.
FirstRand Limited was founded in 1966 and is the largest banking group in Africa by market capitalization, with a market cap of US$24.08 billion.
In 2011, HSBC made a play for the Kenyan market after it opened a representative office in Nairobi. It closed the office three years later, with the Central Bank of Kenya (CBK) cancelling its license on 3rd September 2014.
“HSBC Plc. is currently undergoing a global restructuring exercise that will see it scale down its’ presence in its core operating markets in Europe, Asia and the Middle East as well as in the emerging African market. As a result of this global restructuring exercise, HSBC has decided to scale down its’ presence in Africa including its Representative Office in Nairobi,” CBK said at the time.