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.

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

Recommended

The top funds to invest in now
Funds

The top funds to invest in now

As market volatility continues, here are the top funds, stocks and investment trusts investors are putting their money into, according to one investme…
2 Dec 2022
7 sin stocks to buy yielding up to 8%!
Share tips

7 sin stocks to buy yielding up to 8%!

Sin stocks don’t have the best reputation, but when it comes to investment returns, they’re certainly worth a closer look.
2 Dec 2022
Share tips of the week – 2 December
Share tips

Share tips of the week – 2 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
2 Dec 2022
3 emerging-market stocks to watch
Share tips

3 emerging-market stocks to watch

The top emerging-market stocks to keep an eye on, according to Union Bancaire Privée’s Eli Koen.
1 Dec 2022

Most Popular

Is it cheaper to leave the heating on low all day?
Personal finance

Is it cheaper to leave the heating on low all day?

The weather is getting colder and energy bills are rising, but is it really cheaper to leave the heating on low all day or should you only turn it on …
1 Dec 2022
Radiator vs electric heater – which is cheaper?
Personal finance

Radiator vs electric heater – which is cheaper?

We compare the costs, pros and cons of radiators and electric heaters and see which one will help keep your energy bill as low as possible.
28 Nov 2022
State pension errors – why tens of thousands of mothers could be missing out on millions in state pension payments
State pensions

State pension errors – why tens of thousands of mothers could be missing out on millions in state pension payments

LCP launches Mothers Missing Millions campaign amid DWP state pension errors.
3 Dec 2022