Emirates NBD Egypt said it will acquire the retail banking business of HSBC Egypt, an indirect subsidiary of HSBC. The transaction, which is expected to close by 2027 subject to regulatory approvals, is expected to strengthen Emirates NBD Egypt’s position as a leading retail banking franchise in the country and generate an estimated $300 million (Dh1.1 billion) pre-tax gain for HSBC Group.
The agreement includes HSBC Egypt’s retail banking portfolio as well as the associated branch and ATM network, customer base and relevant employee base, the bank said.
The sale follows a strategic review of HSBC Egypt’s retail banking business, announced last year, and forms part of ongoing simplification of the HSBC Group as it focuses on increasing leadership and market share in the areas where it has a clear competitive advantage and the greatest opportunities to grow and support its clients.
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Emirates NBD Egypt, a wholly owned subsidiary of Dubai-based Emirates NBD Bank, is a leading private sector bank in the country and has been operating since 2013 after the acquisition of the BNP Paribas subsidiary by Emirates NBD. It currently has over 67 branches across Egypt’s major districts, including Greater Cairo, Giza, Alexandria, North Coast, Delta, Upper Egypt, Sinai and the Red Sea.
HSBC said there are no immediate changes for HSBC Egypt’s retail customers and products and services will continue to operate as normal. Both parties will work together to enable a smooth transition for colleagues and customers.
Egypt remains an important market for HSBC with strong growth potential, and the bank said it will continue to support its corporate and institutional banking clients in the country. HSBC added that it is committed to driving two-way trade and investment flows to support multinational clients operating in Egypt and enabling domestic wholesale clients to achieve their international ambitions.
Hesham Abdulla Al Qassim, Vice Chairman and Managing Director of Emirates NBD and Chairman of Emirates NBD Egypt said that the bank remains confident in the North African country’s dynamic market and its long-term growth prospects.
“We look forward to further expanding our footprint in the country and contributing to Egypt’s continued economic growth and development,” he said.
Source: Khaleej Times