HSBC Continues to Sell Non-Core Assets

Antonio Losada, President and CEO of HSBC Latin America and the Caribbean

HSBC is selling businesses in four South American countries as it carries on its plan of leaving what it regards as less promising markets.

The deal is still subject to regulatory approval but HSBC has reported the sale of its affiliates in Uruguay, Colombia, Peru and Paraguay to the Colombian group Gilinski, an operation involving 400 million dollars.

HSBC has now announced 11 deals to sell or close operations that it does not consider central to its growth plans.

Speaking about this latest deal, Antonio Losada, President and CEO of HSBC Latin America and the Caribbean, said: “We are pleased to have reached this agreement with Banco GNB Sudameris as we seek to focus on our operations where we see the greatest potential for sustainable growth for HSBC.

The combined the banks being sold have 62 branches across the four countries and assets worth $4.4bn

Before the operation is completed Banco GNB Sudameris must obtain the approval from the regulatory agencies in the four countries. The group said it expects the operations in Colombia and Peru will be closed in the last quarter of 2012, and in Uruguay and Paraguay in the first quarter of 2013.

Another bank on sale is Lloyds, which has been in Uruguay since 1863. Apparently there are ongoing talks with the local affiliate of the Swiss Banque Heritage.