HSBC sells Panama unit to Bancolombia
HSBC Holdings has agreed to sell its Panama unit to Bancolombia for 2.1bn dollars - three times the net asset value, the bank said in a statement Tuesday.
HSBC Holdings has agreed to sell its Panama unit to Bancolombia for 2.1bn dollars - three times the net asset value, the bank said in a statement Tuesday.
The transaction of HSBC Bank Panama will be subject to regulatory approvals and is expected to be completed by the third quarter of 2013.
Unaudited estimates show the unit had $7.6bn of assets, $5.7bn of loans and $5.8bn of deposits, excluding previously announced disposals and other adjustments.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
HSBC acquired most of its Panamanian operations when it bought Grupo Banistmo for $1.77bn in 2006.
The sale of the unit comes as Chief Executive Officer Stuart Gulliver tries to boost profits by targeting fewer markets.
Gulliver, who was appointed the head of the bank in 2011, is working to invest in economies with greater market share including Brazil, Mexico and Argentina in Latin America. Slashing costs and selling assets are also part of his plan.
This month the company sold its stake in Shenzhen, China-based Ping An Insurance (Group) Co. for about $9.4bn.
Since 2011, HSBC has announced the sale or closure of 46 assets including operations in Costa Rica, El Salvador and Honduras.
RD
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Dividend heroes: the investment trusts that have increased their dividends for 20+ years
Investment trusts can be a good option for income-focused investors – but which trusts have consistently increased their dividends over the past 20 years?
By Katie Williams Published
-
Six reasons not to top up your state pension
A deadline to buy National Insurance credits and top up your state pension is fast approaching. Here’s why it may not be worth it for some people
By Ruth Emery Published