HSBC Bank Middle East has received the UAE Central Bank’s approval for its acquisition of Lloyds Banking Group’s onshore assets and liabilities, the bank said in a statement.
HSBC is taking over Lloyds’ retail, commercial and corporate banking business in the UAE. However, Lloyds will retain its international wealth business in the country.
The business acquired from Lloyds Banking Group has approximately 8,800 personal and commercial customers and a loan book of approximately $573 million (as at 31 December 2011), the statement said.
Abdulfattah Sharaf, CEO of HSBC UAE, said, “This announcement marks an important milestone in HSBC’s history in the UAE. HSBC first opened for business here in 1946 and has a record of long-term commitment and investment in the UAE.
“I thank the central bank for its support and encouragement of HSBC’s continuous growth in the UAE.”
The two banks had first announced the acquisition in March this year.
“The Lloyds Group’s decision to sell the onshore UAE presence follows its Group Strategic Review, announced on 30 June 2011, when it committed to simplify its international footprint,” Richard Musty, UAE country head said at that time.
“We remain fully committed to our International Wealth business in the UAE,” he said.
“We have clear growth plans for it as we firmly believe we have the right to win in the Middle East market and we will invest further in this business to help this business grow in the years ahead.”