HSBC shifts SA customers to FirstRand and Absa, as it exits the country

HSBC has reached an agreement to transfer its business in South Africa to local lender FirstRand Bank Ltd, the British bank said on Thursday, 26 September, 2024, as it exits from the country entirely amid a wider pivot towards Asia.

Source: Reuters.

The transaction will include the transfer of the branch’s clients, banking assets and liabilities, and will provide transferred clients with continued access to banking services, HSBC said.

HSBC has separately agreed that Absa Bank will provide HSBC's equities and securities finance clients with access to the South African market, as HSBC winds down all its legal entities in the country.

HSBC's move comes as the once globe-spanning company continues to move its focus towards Asia.

The lender's business in South Africa operates as a branch of its British unit and offers commercial and investment banking services, with no personal or retail banking, according to its website.

HSBC did not give details of any financial consideration paid by either party in the agreements with FirstRand and Absa.