The deal, which is expected to be completed by the third quarter of 2013, is three times the unit’s net asset value of $700m, HSBC stated.
Antonio Losada, chief executive of HSBC Latin America, said this was the 46th sale or closure globally since HSBC set out its review strategy in 2011, and that “it demonstrates our commitment to the group strategy for the region, based on our five-filter approach, to concentrate on our core markets of Brazil, Mexico and Argentina”.
HSBC Panama had a sizeable $7.6bn of assets, $5.7bn of loans and $5.8bn of deposits, excluding previously announced disposals, as at 30 September 2012 according to unaudited estimates.
Its operations include the brokerage, fiduciary services unit, banking business and its insurance company.
HSBC completed the sale of its stake in Ping An Insurance earlier this month for approximately $9.4bn, following approval from the China Insurance Regulatory Commission.
