HSBC is winding down its operations in South Africa, with FirstRand Bank set to take over its branch businesses, while its securities and equities operations will be transferred to Absa.
The British finance institution has serviced South Africa for nearly 30 years.
It said yesterday that “HSBC’s legal entities in the country will be wound down, whilst ensuring all regulatory and customer obligations” are met.
As it departs SA, HSBC has reached an agreement to transfer its South Africa branch business to FirstRand Bank Ltd. This will encompass the transfer of HSBC’s SA branch clients and banking assets, as well as liabilities, to FirstRand Bank.
The transfer to FirstRand Bank “will provide transferred clients with continued access to banking services” in South Africa, while employees of the British bank will join the South African financial services group.
The transaction is expected to be completed in the fourth quarter of 2025 and will be subject to regulatory and governmental approvals.
“HSBC’s current international wholesale banking clients will continue to have connectivity through HSBC channels for their accounts in South Africa once they have transferred to FRB. The transaction will also support HSBC’s global clients who require future access to corporate banking products and services in South Africa,” said the British bank.
Further to this, HSBC has reached an agreement for Absa Bank Ltd and Absa Capital Securities to provide its global equities and securities finance clients with continued access to the South African market.
“Following a strategic review, we are pleased to have signed agreements with FRB and Absa. They both have extensive networks and are leading corporate and investment banks in the region,” said Colin Bell, CEO for HSBC Bank plc.
In terms of the agreement, Absa will provide HSBC and its clients with access to a full suite of equities trading and prime brokerage products in South Africa.
Quintus Kilbourn, head of equities at Absa Corporate and Investment Banking, said the agreement aligned with Absa’s growth ambitions, which includes serving corporate and investment banking clients with access to equities markets and product.
Kilbourn said it also underscored Absa’s position as a leading equities franchise in South Africa, with a market-leading equities trading and finance platform and prime brokerage capabilities to deliver on clients’ needs and expectations.
“The agreement is an endorsement of our strategy, which emphasises providing our clients with best-in-class equities product and equity market access. It is also recognition of the depth of Absa’s client base and equities product,” Kilbourn said. - Tawanda Karombo.