HSBC has agreed to sell its retail banking unit in Bahrain to Bank of Bahrain and Kuwait (BBK) as part of its ongoing global restructuring efforts.
Financial details of the deal have not been disclosed.
The transaction will involve the transfer of retail loans, deposits, and accounts of approximately 76,000 customers to BBK, which is majority-owned by the governments of Bahrain and Kuwait.
HSBC’s corporate and private banking businesses in Bahrain are not included in the sale.
The bank has been streamlining its global operations, exiting low-return consumer banking markets, consolidating parts of its commercial and investment banking divisions, and restructuring its leadership.
Earlier this week, HSBC reportedly laid off around 40 investment bankers in Hong Kong, according to sources cited by Reuters.
Last month, the British lender announced plans to wind down its mergers and acquisitions (M&A) and certain equities businesses in Europe and the Americas, marking one of its most significant retreats from investment banking in recent years.
The move aligns with HSBC’s strategic pivot towards Asia, where it sees greater growth potential.
Separately, HSBC has announced its full-year results for 2024, reporting a $2bn increase in pre-tax profit to $32.3bn.
Revenue remained stable at $65.9bn, driven by higher customer activity in wealth management within wealth and personal banking (WPB) and growth in equities and securities financing within global banking and markets (GBM).
As part of its broader restructuring, HSBC also considered selling its South African operations in August 2024 to focus on its core Asian markets.
The South African business, which operates under HSBC’s British division, provides commercial and investment banking services but does not offer retail banking.
In September 2024, HSBC agreed to sell its private banking operations in Germany to BNP Paribas. Under the terms of that agreement, approximately 120 employees, along with the assets and customers of HSBC Germany’s private banking business, will be transferred to BNP Paribas.
