HSBC offloads Bahrain retail banking operations to BBK
HSBC has agreed to sell its retail banking operations in Bahrain to the Bank of Bahrain and Kuwait (BBK), as the firm continues its strategy of divesting non-core global operations.
HSBC sells Bahrain retail business to BBK
As part of the deal, BBK, which offers a range of retail and commercial banking services through its 16 local branches, will acquire all deposits, loans, and accounts of HSBC Bahrain’s 76,000 retail customers.
BBK anticipates the transaction to close in Q4 2025, subject to regulatory approval. The financial terms are undisclosed.
This sale aligns with HSBC’s ongoing efforts to streamline its global business. Last year, the bank sold its private banking arm in Germany, and also sold its banking operations in Argentina to Grupo Financiero Galicia for $550 million.
In a separate move, HSBC also announced last month that it was closing its international money app, Zing, just a year after the app’s launch in the UK.
An HSBC spokesperson told FinTech Futures at the time that the decision to close Zing “forms part of the simplification of the Group announced on 22 October 2024. HSBC is focused on increasing leadership and market share in the areas where it has a clear competitive advantage.”
The agreement with BBK coincides with HSBC’s announcement of its 2024 annual results, in which the bank reported a $2 billion increase in profit before tax, bringing the total to $32.3 billion.
The bank highlighted “notable items” which contributed to this growth, including a $4.8 billion gain following “the disposal of our banking business in Canada“. However, the sale of its Argentinian unit resulted in a $1 billion loss.
Commenting on the bank’s financial results, Group CEO Georges Elhedery states: “Since becoming CEO, I have focused on simplifying how we operate and injected energy and intent into the way we deliver our strategy. We are creating a simple, more agile, focused bank built on our core strengths.”
Going forward, HSBC also revealed plans for a share buy-back of up to $2 billion, which the bank expects to complete “by our first quarter 2025 results announcement”.
