HSBC has agreed to divest its retail banking operations in Egypt to Emirates NBD Egypt.
The agreement includes the assets and liabilities tied to HSBC Egypt’s full retail banking business.
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This covers retail loans, customer deposits and accounts, along with employees supporting the business being transferred.
The deal is expected to close in the second half of 2027, pending regulatory clearance.
HSBC said there will be no immediate change for retail customers in Egypt, and existing products and services will continue as usual during the process.
The two banks will work together on the transition for staff and customers.
For HSBC Group, the transaction is expected to result in an estimated pre-tax gain of about $300m.
The bank said this would be recognised mainly when the deal completes and treated as a material notable item.
HSBC expects the disposal to have an immaterial effect on the group’s common equity Tier 1 capital ratio.
“Egypt remains an important market for HSBC with strong growth potential”, said the bank adding that it will continue to support its corporate and institutional banking clients in the country.
The bank also said it remains focused on “two-way trade” and investment flows, supporting multinational companies in Egypt and domestic wholesale clients with international activities.
The transaction follows a review of HSBC Egypt’s retail banking arm announced last year.
It is part of a broader effort to simplify the group and concentrate on markets and business areas where it sees stronger competitive positioning and room for growth.
The Egypt deal follows other disposals involving HSBC’s retail operations.
Last week, HSBC Bank Australia agreed to sell its Australian mortgage and personal lending portfolio to Blackstone, with those assets carrying a book value of around A$36bn ($25bn).
In June, Bloomberg reported, citing sources, that Emirates NBD was in discussions to acquire HSBC’s operations in Türkiye.
Earlier, in May, OCBC Indonesia signed an agreement with PT Bank HSBC Indonesia to take over the assets and liabilities linked to HSBC Indonesia’s retail banking and wealth management business.
