HSBC Bank Middle East has reached an agreement to divest its banking business in Jordan to Arab Jordan Investment Bank (AJIB), as part of its strategy to streamline its operations.
The latest divestment is a part of HSBC’s strategy to dispose of its non-core assets across the globe, so that the bank can manage and control its operations with greater efficiency.
The transaction, whose financial terms have not been disclosed by both companies, is likely to conclude during the first half of 2014. All the staff of HSBC’s Jordan banking business will be absorbed by AJIB, as per the agreement.
As at 30 September 2013, HSBC’s Jordan banking business comprised four branches with gross assets of approximately $1.203bn.
Commenting on the agreement, Arab Jordan Investment Bank GM/CEO Hani AL-Qadi said that the bank is pleased to have signed this agreement which has full regulatory backing.
"This acquisition is part of AJIB’s growth strategy, and the business acquired well complements our existing product line and consolidates our market share in the Jordanian market," AL-Qadi added.
"We look forward to working with HSBC’s local team over the next few months to ensure a smooth transition with minimal impact on clients and employees."
In December 2013, HSBC reportedly reached an agreement to divest its 8% equity stake in Bank of Shanghai (BoS) to Spanish lender Banco Santander.
Image: The HSBC building in Manila, Philippines. Photo courtesy of Elmer B. Domingo.