HSBC Asia Holdings is planning to wind down its banking business in Iraq, by disposing of its 70.1% stake in Dar Es Salaam bank (DES), following completion of a strategic review of the business in the country.
In April, HSBC Middle East and North Africa chief executive Simon Cooper signaled that the bank will take some important decision about its Iraq operation, as reported by Reuters.
Citing a regulatory filing in London, the new agency was quoted as saying, "Following a strategic review, it was decided to explore options for the disposal of HSBC’s shareholding in DES (Dar Es Salaam)."
London-based lender has scrapped any possibility to increase capital for the bank.
Since October 2005, HSBC had partnered with DES, which offers corporate and consumer banking services and manages 14 branches in the country.