HSBC to close sub-custody business in Lebanon

Closing down signHSBC will close its sub-custody operation in Lebanon following the sale of its banking business in the country to Blom Bank.

The impending closure marks a further retrenchment of HSBC Securities Services in the Middle East following a withdrawal from Jordan in 2014.

Blom Bank, which is the second-largest bank in Lebanon by market capitalisation, says it has signed a deal to buy HSBC’s banking operation in Lebanon, consisting of three branches and about $953 million in assets. The banks were reported to be in talks about a proposed sale in July.

A statement from the company says “Blom Bank will ensure employment continuity to all HSBC current employees and is committed to a smooth transition for all clients”.

HSBC confirmed to Funds Global MENA that the firm’s sub-custody business was not part of the deal and would be closed. As of July, the bank employed two full-time securities services workers in the country.

Blom Bank must get regulatory approval for its acquisition, which it hopes to complete in 2017.

©2016 funds global mena

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