By Mark Ogagan
The South African banking industry has taken another knock, with the Hongkong and Shanghai Banking Corporation Limited (HSBC) announcing its decision to exit the country after reaching an agreement to transfer its local branch operations to FirstRand Bank.
The withdrawal takes effect from 1 September 2025. The group had initially set a deadline of 31 October 2025 to finalise it exit from South Africa. The group started its local operations in 1995.
The transaction will involve the transfer of the branch’s clients, assets, and liabilities, ensuring that clients continue to have access to banking services in South Africa through FirstRand. Employees of HSBC’s South African branch will also move to FirstRand as part of the agreement.
HSBC expects the transaction to be completed by the fourth quarter of 2025, pending regulatory and government approvals. The bank assured that its international wholesale clients will retain access to HSBC’s global network for their South African accounts once transferred to FirstRand. The agreement will also support HSBC’s global clients in need of corporate banking services in South Africa.
Additionally, HSBC has partnered with Absa to ensure that its global equities and securities finance clients maintain access to the South African market post-exit. HSBC South Africa will continue serving its branch clients until the transition is finalized.
Following a strategic review, HSBC’s legal entities in South Africa will be wound down while ensuring compliance with regulatory and customer commitments. This move follows similar exits by other European banks from South Africa, including BNP Paribas, Barclays, and Standard Chartered, as part of broader strategic shifts on the continent.
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