HSBC has announced it is selling Kazak subsidiary, SB JSC HSBC Bank Kazakstan, to JSC Halyk Bank for $176m based on a new asset value of $160m.
The acquisition is expected to complete in the fourth quarter of 2014 after regulatory approvals and other conditions are finalised.
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JSC Halyk Bank is Kazakstan’s biggest bank by customers and distribution.
The news comes after HSBC reported disappointing full-year results, falling short of analyst expectations with a 9% rise in profit before tax for 2013 to $22.6bn. This was less than the $24.5bn analysts expected.
HSBC dampened concerns that volatility in emerging markets would hurt business, claiming that underlying profits had actually been 41% higher in 2013 as lower costs and better performance from its shrinking US consumer finance business was a success.
It also claimed net profit rose 15% to $16.2bn.
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By GlobalDataShares in London dipped £0.01 ($0.016) at 0855 GMT to £6.26 but recovered to £6.29 by mid morning.
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