DUBAI: Emirates NBD has agreed to acquire the retail banking business of HSBC Bank Egypt, marking a significant expansion for the Dubai-based lender in one of the Middle East and North Africa’s largest banking markets.
The transaction, announced by HSBC Holdings on Sunday, will see Emirates NBD Egypt acquire HSBC Egypt’s retail loans, customer deposits, retail customer accounts, and the employees supporting the transferring business.
Financial terms of the agreement were not disclosed. The acquisition remains subject to regulatory approvals and customary closing conditions and is expected to be completed during the second half of 2027.
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Until the transaction is finalised, HSBC Bank Egypt said it will continue to provide uninterrupted services to its retail banking customers. Both banks said they will work closely to ensure a smooth transition for customers and employees once the deal receives the necessary approvals.
HSBC expects to record an estimated pre-tax gain of around $300 million from the sale, with the majority of the gain to be recognised upon completion of the transaction. The lender added that the divestment is expected to have an immaterial impact on its Common Equity Tier 1 (CET1) capital ratio.
The sale follows HSBC’s strategic review of its retail banking operations in Egypt, announced last year, and is part of the group’s wider effort to simplify its business and allocate resources to areas where it believes it has stronger competitive advantages and higher growth potential.
Despite exiting the retail banking segment, HSBC said it remains committed to Egypt and will continue to operate in the country through its corporate and institutional banking business. The bank said it sees significant long-term opportunities in supporting cross-border trade, investment, and multinational clients operating in the Egyptian market.
For Emirates NBD, the acquisition further strengthens its regional expansion strategy and reinforces its position in a key market with a large population and growing banking sector. The lender has been steadily increasing its presence across the Middle East, North Africa and Türkiye region as it seeks to broaden its customer base and deepen its regional footprint.
