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

Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022
Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022
Three Sharia-compliant growth companies
Share tips

Three Sharia-compliant growth companies

Professional investor Scott Klimo of the Saturna Al-Kawthar Global Focused Equity ETF tips three Sharia-compliant stocks.
30 Jun 2022
Why the cost of living crisis could be a boon for this cheap retailer
Retail stocks

Why the cost of living crisis could be a boon for this cheap retailer

Like many retailers, B&M is facing the dual headwinds of lower sales and higher costs as inflation bites. But its business model has proved hugely suc…
29 Jun 2022

Most Popular

Prepare your portfolio for recession
Investment strategy

Prepare your portfolio for recession

A recession is looking increasingly likely. Add in a bear market and soaring inflation, and things are going to get very complicated for investors, sa…
27 Jun 2022
Market crash: have we hit bottom or is there worse to come?
Stockmarkets

Market crash: have we hit bottom or is there worse to come?

For a little while, markets looked like they were about to embark on a full-on crash. And that could still happen, says Dominic Frisby. Today, he look…
27 Jun 2022
What the end of the 1970s bear market can teach today’s investors
Stockmarkets

What the end of the 1970s bear market can teach today’s investors

The 1970s saw the worst bear market Britain has ever seen, with stocks tumbling 70%. Things have changed a lot since then, says Max King. But there ar…
28 Jun 2022