HSBC Group announced that it is now the majority shareholder in its subsidiary in Saudi Arabia.
The bank has completed the transaction to increase its shareholding in HSBC Saudi Arabia to 51 per cent from 49 per cent by acquiring shares from the Saudi British Bank (SABB), it announced on Wednesday.
HSBC Saudi Arabia is now an indirect 51 per cent owned subsidiary of HSBC Holdings with SABB remaining the other shareholder.
“HSBC Saudi Arabia is well positioned to capture value and new opportunities” in the kingdom as part of its economic transformation programme, a statement said.
The lender, which established itself in Saudi Arabia almost 70 years ago, is currently also seeking roles in Saudi Aramco’s upcoming IPO, according to reports.
HSBC, which is growing its presence in the Middle East, made a reported profit before tax of $1.5bn in the MENAT region last year.
Its regional operations in nine countries includes some 350 offices and around 10,500 employees.
Earlier this year, the lender also opened a branch in Abu Dhabi Global Market (ADGM), after being granted a licence by its Financial Services Regulatory Authority.
HSBC’s ADGM branch will support the bank’s presence throughout the UAE and will enable it to provide advisory services to institutional clients from the international financial centre, a statement said.
Late last year, a senior bank executive said he expected HSBC to more than double its profit within its commercial bank in the MENA region by 2023.