HSBC to sell Egyptian retail portfolio to Emirates NBD

HSBC is exiting retail banking in Egypt after 44 years in the market but has no intention of pulling back from corporate and institutional banking here here, pdf

It’s the second significant regional move this summer for Emirates NBD USD 2.8 bn acquisition ENBD, led in Egypt by Amr El Shafei, is majority controlled by the Emirate of Dubai

If it goes through, the transaction will make Emirates NBD the sixth or seventh-largest retail franchise in Egypt

The sale is the latest in a string of retail exits globally as HSBC refocuses under Group CEO Georges Elhedery.

The transaction is still subject to regulatory approvals from the Central Bank of Egypt and the usual conditions precedent

REFRESHER- strategic review at least four suitors CIB

Egypt itself has seen a version of this play out before

The Central Bank of Egypt will review whether Emirates NBD has the capital, liquidity, and operational capacity

It’s business as usual for HSBC Egypt’s clients, staff, and branches, at least for now

“Clients won't feel the impact of the transaction on announcement day He puts HSBC Egypt’s active retail customer base at around 330k.

HSBC is selling a strong business

The retail business sits firmly in the black per its 1Q results (pdf)

What we know is in the book:

This isn’t a verdict on Egypt

HSBC’s move is part of a global retreat from retail banking that extends well beyond Egypt. mid-2023

While that meant retail was taking a back seat, HSBC says it’s very focused on the wholesale banking side of the business here in Egypt. told us

Where else is HSBC pulling back?

HSBC has fully exited retail banking in Canada, France, South Africa, Bahrain, and Sri Lanka Argentina retail operations Indonesia Australia Malta US

We’ve been here before, too: sold its retail portfolio 100k accounts

Who the exit (eventually) affects and how

HSBC Egypt runs three retail tiers current account Advance Premier climbed steeply

OUR TAKE- That puts a more concentrated, higher-balance book in Emirates NBD’s hands

News of the sale is just the beginning:

Where that leaves the rest of the market

Egypt’s banking industry is simultaneously crowded and top-heavy. Standard Chartered OneBank FAB’s acquisition of Bank Audi Bank ABC’s purchase of Blom Egypt

“The real value of the transaction will not be measured by portfolio size alone

HSBC by the numbers: