The acquisition of HSBC’s wealth and personal banking and business banking business in Mauritius is expected to further strengthen Absa Bank Mauritius’s retail and business banking division and expand as an influential player in the Mauritian economy
Absa Group office building in Johannesburg, South Africa. (Credit: Nicola Mawson/Wikipedia)
South Africa-based Absa Group, through its subsidiary Absa Bank (Mauritius), has agreed to acquire HSBC’s wealth and personal banking and business banking business in Mauritius.
The transaction includes assets and liabilities associated with nearly 38,000 customers.
Absa Group said the acquisition will strengthen Absa Bank Mauritius’s goal of expanding as an influential player in the Mauritian economy.
The deal enables Absa Bank Mauritius to further enhance its retail and business banking division using existing resources, expertise and infrastructure.
The transaction is subject to the satisfaction of certain conditions that are customary for a transaction of this nature, including regulatory approvals.
Absa Bank Mauritius managing director Ravin Dajee said: “We are proud to be taking over a solid portfolio from HSBC. We are committed to working closely with HSBC to secure all necessary approvals and ensure a seamless transition.”
Absa Group CEO Arrie Rautenbach said: “The transaction speaks to Absa’s growth aspirations in Africa, where we see significant opportunity.
“We remain purposeful in our efforts to create a more diversified business across geography, segment and product, and we will continue to deploy capital to attractive growth prospects across the continent as we deliver on our ambition to being a leading pan-African bank.”
HSBC Mauritius CEO Greg Lowden said: “Our decision to sell these operations reflects our desire to focus on our strengths as a leading international bank in Mauritius. We will continue to serve the needs of our international customers.”
HSBC has been exiting from several retail banking markets in recent years, as part of its strategy to exit from less profitable businesses worldwide and expand in certain Asian markets.
In 2021, the British lender announced its plans to exit the US domestic mass-market retail banking business in a deal that would see the wind-down of several dozens of branches.
Last year, the company agreed to divest its banking business in Canada to Royal Bank of Canada (RBC) for a total consideration of C$13.5bn ($10.1bn) in cash.
In June this year, HSBC announced its plans to wind down the wealth and personal banking business in New Zealand due to changing operating requirements in the market.
Last month, HSBC, through its wholly owned subsidiary HSBC Bank China, signed an agreement to purchase Citigroup’s onshore consumer wealth portfolio in China.
HSBC will acquire Citi’s consumer wealth business, including clients, assets under management (AUM) and deposits in China, excluding its institutional businesses in the country.