HSBC Explores Sale of South Africa Business

HSBC is reportedly considering the sale of its South African business as part of the bank’s strategy to focus on strengthening operations in Asian markets, according to Bloomberg.

The South African business, which was established in 1995, operates as an extension of its British parent company and provides commercial and investment banking services, but no personal or retail banking.

The business and securities division has attracted interest from potential buyers, including banks from South Africa, China and the United Arab Emirates. However, no details of any deals have been finalized.

The London-based bank, which now operates in over 50 markets, has been steadily reducing its presence in Western markets like the US, France, and Canada in recent years.

This forms part of its strategy to bolster and expand its presence in Asia. In line with this heightened focus, the bank recently purchased Citi’s retail wealth management portfolio in mainland China.

As part of the transaction, HSBC acquired Citi’s customer base from 11 major cities across mainland China and over 300 employees from Citi were transferred to the bank.

The potential sale is also a key element of HSBC’s plan to reduce costs and streamline operations under new CEO Georges Elhedery. His appointment was first announced in July, making him the bank’s third new CEO in under eight years.

For example, HSBC has been reducing expenses by slowing hiring and cutting back on travel and entertainment costs.