HSBC sells Central American businesses

published 24 January 2012

International banking giant HSBC is to exit Costa Rica, El Salvador and Honduras.

The company has conditionally sold its operations in those countries to Banco Davivienda, a banking group listed in Colombia. Davivienda, Colombia's third largest bank, will pay $801m in cash for the bankng operations. The deal is epxected to complete in the fourth quarter of 2012.

As at 30 September 2011, the businesses consisted of 136 branches across the three countries and held around $4.3bn of assets and $2.5bn in loans.