HSBC sells Sri Lanka retail business to Nations Trust Bank

By Vriti Gothi

The Hongkong and Shanghai Banking Corporation Limited, Sri Lanka Branch (HSBC Sri Lanka) has entered into a binding agreement to sell its retail banking operations to Nations Trust Bank PLC (NTB).

The agreement encompasses HSBC Sri Lanka’s entire retail banking portfolio, including accounts, credit cards, and retail loans of approximately 200,000 customers. The decision follows a strategic review of HSBC’s operations, which concluded that the transfer would deliver the best long-term outcome for clients, employees, and the HSBC Group as a whole. As part of the transaction, NTB has confirmed that it will extend employment offers to all HSBC staff currently supporting the retail banking business.

HSBC’s Corporate and Institutional Banking operations in Sri Lanka will remain unaffected by this decision. These services continue to be a cornerstone of HSBC’s offering in the country, supporting international corporates and global clients through trade facilitation, investment flows, and advisory expertise. HSBC reaffirmed its commitment to driving economic growth in Sri Lanka by enabling two-way trade and investment between the local market and the bank’s worldwide network.

The divestment is aligned with HSBC Group’s global simplification strategy announced in October 2024. This strategy focuses on strengthening the Group’s presence in markets where it holds a clear competitive advantage and the greatest potential for growth, while ensuring continued investment in high-impact client segments.

For Nations Trust Bank, the transaction marks a significant step in reinforcing its position as a leader in Sri Lanka’s retail and premium banking sector. By integrating HSBC’s retail operations, NTB is poised to enhance its customer proposition, leveraging its reputation for innovation, operational excellence, and customer-centric service design. Both banks have confirmed that they will collaborate closely to ensure a seamless transition for customers and employees in the coming months.

The transaction is expected to generate an immaterial pre-tax gain for HSBC Group upon completion, anticipated in the first half of 2026, subject to customary regulatory approvals.