Emirates NBD Egypt S.A.E. has entered into definitive agreements to acquire the retail banking business of HSBC Bank Egypt S.A.E. in a transaction expected to generate an estimated pre-tax gain of approximately $0.3bn for the HSBC Group.
The deal, expected to complete in the second half of 2027 subject to regulatory approvals, encompasses HSBC Egypt’s entire retail banking portfolio, including retail loans, deposits, accounts, the associated branch and ATM network, and the transferring employee base.
HSBC Holdings PLC said the sale follows a strategic review announced last year and forms part of an ongoing simplification of the group as it focuses on areas where it has a clear competitive advantage. The estimated $0.3bn pre-tax gain will be recognised largely at completion and classified as a material notable item, with the sale expected to have an immaterial impact on the HSBC Group Common Equity Tier 1 capital ratio.
Following the divestment, Egypt will remain an important market for HSBC, which will retain its corporate and institutional banking operations in the country to drive two-way trade and support multinational and domestic wholesale clients. HSBC noted there are no immediate changes for its retail customers, and both parties will collaborate to enable a smooth transition.
For Emirates NBD Bank P.J.S.C., which wholly owns Emirates NBD Egypt, the transaction is expected to enhance its market positioning as a leading retail and premium banking franchise while deepening connectivity across the UAE-Egypt corridor. The group highlighted Egypt as a strategically important core market and a key pillar for driving regional growth ambitions.
“Our investment reflects our continued confidence in Egypt’s dynamic market and its long-term growth prospects. We look forward to further expanding our footprint in the country and contributing to Egypt’s continued economic growth and development,” said Hesham Abdulla Al Qassim, Vice Chairperson and Managing Director of Emirates NBD and Chairperson of Emirates NBD Egypt.
Shayne Nelson, Group CEO of Emirates NBD and Vice Chairperson of Emirates NBD Egypt, stated that the acquisition marks an important milestone in the execution of the group’s regional strategy.
“The transaction strengthens our presence in one of the Group’s core markets and supports our ambition to continue growing our customer franchise in Egypt,” Nelson said.
Amr ElShafei, CEO and Managing Director of Emirates NBD Egypt, noted that the move enhances the bank’s ability to serve customers nationwide.
“This acquisition marks an important step for Emirates NBD Egypt’s growth and further enhances our ability to serve customers across the country,” ElShafei said. “We look forward to welcoming HSBC’s customers to Emirates NBD Egypt, offering seamless financial solutions, comprehensive digital banking services and a customer focused banking experience backed by the strength of the wider Emirates NBD Group.”
