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.
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.
Shares in London dipped £0.01 ($0.016) at 0855 GMT to £6.26 but recovered to £6.29 by mid morning.
HSBC report rise in profit but misses targets