HSBC is reportedly planning to offload its retail banking division in Bahrain to the Bank of Bahrain and Kuwait (BBK), as part of its ongoing global restructuring efforts.
The transaction will involve the transfer of approximately 76,000 customer accounts, including retail loans and deposits, to BBK, which enjoys majority ownership by the governments of Bahrain and Kuwait.
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Financial specifics of the deal, which excludes HSBC’s corporate and private banking operations in Bahrain, were not been made public, Reuters reported.
The move is a continuation of HSBC’s strategy to scale down its international presence, focusing on exiting consumer banking sectors that yield low returns and streamlining its commercial and investment banking divisions, according to the news agency.
Additionally, the bank is implementing significant changes to its leadership structure.
According to a source with direct knowledge of the matter, the lender has dismissed approximately 40 investment bankers in Hong Kong, as reported by Reuters earlier on Tuesday.
Last month, HSBC planned to phase out its mergers and acquisitions and certain equities businesses in Europe and the Americas.
This marks a significant shift towards Asia and represents the bank’s most substantial withdrawal from investment banking activities in several decades.
In August last year, HSBC Holdings considered selling its South Africa assets as the bank focused on Asian markets.
According to Bloomberg, banks from the region, as well as those from China and the United Arab Emirates, were among the bidders expressing interest in the South African branch business and securities operation.
