HSBC sells Central American businesses

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.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues 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

Sign up

Shares in HSBC were down 7.1p, or 1.3%, in lunch-time trading at 537.8p, in a banking sector that was down 1.84% at the time.