HSBC’s Sri Lanka branch has signed a binding agreement to transfer its retail banking operations to Nations Trust Bank (NTB).

Financial details of the deal have not been disclosed by both companies.

The deal includes the bank’s retail deposit accounts, credit card portfolios and consumer loans, affecting about 200,000 customers.

The move follows a strategic review that determined divestment of the retail unit was the preferred course for the HSBC Group and its stakeholders.

Under the terms, NTB will offer employment to staff currently engaged in HSBC Sri Lanka’s retail activities.

HSBC’s corporate and institutional banking operations in Sri Lanka will continue unchanged, reflecting their role in serving international corporate clients and facilitating cross‑border trade and investment.

The disposal is part of HSBC Group’s simplification plan announced in October 2024.

HSBC said the reorganisation allows it to concentrate on areas where it has a competitive focus and growth prospects.

NTB described the acquisition as an opportunity to broaden its retail and premium banking operations and strengthen its operational capabilities.

Both banks said they will coordinate the transfer over the coming months to minimise disruption for customers and employees.

The transaction is expected to produce an immaterial pre‑tax gain for the HSBC Group on completion, which is anticipated in the first half of 2026, subject to regulatory clearances.

In July this year, HSBC announced that it will exit its International Wealth and Premier Banking (Retail Banking) operations in Bangladesh.

The decision followed a comprehensive review of the business, which evaluated its market position in Bangladesh and its alignment with HSBC Group’s overall strategy.