As part of a broader strategy to streamline its global operations, HSBC agrees to divest its entire Sri Lankan retail banking arm—including 200,000 customers—to local lender NTB for LKR 18 billion, aiming for deal completion in H1 2026.
Highlights
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HSBC enters into a binding agreement to sell its Sri Lanka retail banking operations—including credit cards, retail loans, and accounts of ~200,000 customers—to Nations Trust Bank (NTB).
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The acquisition is valued at LKR 18 billion, will be funded through NTB’s internally generated funds, and aims to maintain regulatory capital ratios.
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HSBC will retain its corporate and institutional banking business in Sri Lanka; the transaction is subject to regulatory approval and expected to close in the first half of 2026.
Summary:
HSBC has signed a binding Sale and Purchase Agreement to sell its entire retail banking operations in Sri Lanka to Nations Trust Bank (NTB) for LKR 18 billion. The deal covers the full retail portfolio, including credit cards, retail loans, deposit accounts, and premium customer segments—approximately 200,000 customers.
NTB will fund the purchase using its internally generated reserves, while maintaining all required regulatory capital ratios. Importantly, HSBC will continue to operate its corporate and institutional banking in Sri Lanka; those operations are not part of this sale.
The exit from the retail segment is part of HSBC’s global simplification strategy launched in October 2024, whereby it is retreating from non-strategic, lower-return retail markets. The transaction is expected to be finalized in the first half of 2026, once regulatory approvals and other conditions precedent are met.
