HSBC to sell Bahrain retail banking unit to Bank of Bahrain and Kuwait

By Gloria Methri

HSBC Bank has signed an agreement to transfer its retail banking business in Bahrain to the Bank of Bahrain and Kuwait B.S.C. (BBK), a retail and commercial bank in the country. The transaction remains subject to regulatory approval from the Central Bank of Bahrain and is expected to be completed in the fourth quarter of 2025.

This strategic move aligns with HSBC’s broader focus on refining its operations in key markets while continuing to serve corporate and private banking clients in Bahrain. The agreement does not affect HSBC’s Corporate and Private Banking businesses in the region, which will continue to operate as usual.

“We are focused on supporting our impacted colleagues and customers in Bahrain and will work closely with BBK to facilitate a smooth transition, subject to the Central Bank of Bahrain’s approval,” an HSBC spokesperson said.

BBK, one of Bahrain’s largest financial institutions, has a substantial retail banking presence and is well-positioned to integrate HSBC’s retail customers into its network. The acquisition involves the migration of retail loans, deposits, and accounts of approximately 76,000 customers to BBK. The bank is majority-owned by the governments of Bahrain and Kuwait, further strengthening its financial backing.

The financial terms of the deal have not been disclosed, and it does not include HSBC’s corporate and private banking divisions in Bahrain. Further details regarding the transition process will be shared in due course as HSBC and BBK work toward completing the transaction.