Emirates NBD Egypt, a 100% owned subsidiary of Emirates NBD Bank, has entered into definitive agreements to acquire the retail banking business of HSBC Bank Egypt, an indirect subsidiary of HSBC Holdings. 

The transaction remains subject to regulatory approvals and closing conditions, said a statement. 

As part of the transaction, Emirates NBD Egypt will acquire HSBC Egypt’s retail banking portfolio along with the associated branch and ATM network, customer base and relevant employee base. 

The transaction is expected to enhance Emirates NBD Egypt's market positioning as a leading retail and premium banking franchise in Egypt, while deepening the connectivity for the Group across the UAE-Egypt corridor. 

Egypt is a strategically important market for Emirates NBD and a key pillar for driving group’s regional growth ambitions and further expanding its presence in one of its core markets, it said.

The ​value of the transaction was not disclosed by Emirates NBD, but HSBC Group said in a separate ​statement that the sale is ​expected to generate pre-tax gain of around $300 million for the ⁠group.

The sale is expected to complete in the second half of 2027, subject to regulatory approvals, HSBC said.

"The transaction covers the assets and liabilities of HSBC Egypt’s entire retail banking business, including retail loans, deposits and accounts, as well as the employees supporting the transferring business. There are no immediate changes for HSBC Egypt’s retail customers and their HSBC products and services will continue to operate as normal. Both parties will work together to enable a smooth transition for colleagues and customers," the HSBC statement said.

HSBC’s strategic focus in Egypt

Egypt remains an important market for HSBC with strong growth potential, and the bank will continue to support its corporate and institutional banking clients in the country. HSBC 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, it 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, it added. - TradeArabia News Service