HSBC announced in February its decision to sell the HSBC Armenia unit to Ardshinbank, Armenia’s leading bank, as part of its strategy to reallocate capital from less strategic or low-growth businesses to areas with higher growth potential globally.
Ardshinbank confirmed the acquisition in a separate statement, with its CEO assuring a “smooth and seamless transition” for HSBC Armenia’s approximately 30,000 customers. The financial details of the deal, which still requires regulatory approval, have not been disclosed by either party.
The Central Bank of Armenia stated that its governing board gave “preliminary consent” to the transaction during a meeting held on Tuesday.
HSBC Armenia, established in 1996, is the only local commercial bank under the control of a major Western banking group. The bank currently holds total assets worth 290 billion drams ($720 million) and around 200 billion drams in customer deposits.
The bank’s net profit increased from 8 billion drams in 2022 to over 11 billion drams ($27 million) last year, while Ardshinbank reported earnings of nearly 63 billion drams in 2023.
According to a May 2023 report by Reuters, HSBC is contemplating exiting up to a dozen countries, following previous announcements of selling parts or all of its operations in France, Canada, Russia, and Greece. HSBC finalized the sale of its French retail business to CCF on January 1, 2024, just days after Canada’s approval of the acquisition of its Canadian operations by the Royal Bank of Canada.
Armenia’s Central Bank has granted permission for HSBC, Europe’s largest bank, to sell its Armenian subsidiary, marking the end of nearly three decades of its presence in the country.
HSBC announced in February its decision to sell the HSBC Armenia unit to Ardshinbank, Armenia’s leading bank, as part of its strategy to reallocate capital from less strategic or low-growth businesses to areas with higher growth potential globally.
Ardshinbank confirmed the acquisition in a separate statement, with its CEO assuring a “smooth and seamless transition” for HSBC Armenia’s approximately 30,000 customers. The financial details of the deal, which still requires regulatory approval, have not been disclosed by either party.
The Central Bank of Armenia stated that its governing board gave “preliminary consent” to the transaction during a meeting held on Tuesday.
HSBC Armenia, established in 1996, is the only local commercial bank under the control of a major Western banking group. The bank currently holds total assets worth 290 billion drams ($720 million) and around 200 billion drams in customer deposits.
The bank’s net profit increased from 8 billion drams in 2022 to over 11 billion drams ($27 million) last year, while Ardshinbank reported earnings of nearly 63 billion drams in 2023.
According to a May 2023 report by Reuters, HSBC is contemplating exiting up to a dozen countries, following previous announcements of selling parts or all of its operations in France, Canada, Russia, and Greece. HSBC finalized the sale of its French retail business to CCF on January 1, 2024, just days after Canada’s approval of the acquisition of its Canadian operations by the Royal Bank of Canada.
