HSBC sells Thai WM arm to Krungsri
From Asia Jan 26 2012 BY: Will Jackson
, Contributing editor
, International Adviser
HSBC has entered an agreement to dispose of its Thailand-based retail banking and wealth management arm, and expects the deal to be completed in the first half of 2012.
The banking giant said yesterday that it has agreed to sell the business to the Krungsri Group, which claims to be the fifth-largest universal bank in Thailand.
According to Krungsri, the deal, which is subject to both shareholder and regulatory approval, represents an investment of THB3.557bn ($113m) and will boost its assets by THB17.452bn.
The acquisition is designed to “leverage” the distribution channels of Bank of Ayudhya, a member of the Krungsri Group, it said. The addition of HSBC’s portfolio means that Krungsri will serve more than ten million customers, with over 4.8 million credit cards in circulation.
HSBC’s mortgages, personal loans and deposits will be merged into the Bank of Ayudhya, the group added, while the credit card business will become part of Krungsri Credit Card.
“This acquisition offers HSBC customers extra benefits from Krungsri Group’s broader range of products and services, together with more extensive distribution channels and touch points across the nation,’’ said Mark Arnold, president and CEO of the Krungsri Group.
Exiting Costa Rica, El Salvador and Honduras
The deal follows a separate announcement by HSBC this week, in which it said that it expects to sell the whole of its banking operations in Costa Rica, El Salvador and Honduras, to Banco Davivienda, Colombia’s third-largest bank, for $801m in cash.
According to HSBC, both disposals are in line with a corporate strategy it set out in May 2011.