HSBC Acquires Lloyds Banking Group Onshore Business In The UAE

Lloyds Banking Group approved  to sell its onshore UAE presence to HSBC. This comprises its retail, commercial and corporate banking businesses, which operate through one branch in Dubai. This proposed sale includes all customer accounts and infrastructure. The sale is subject to regulatory approval.

The sale does not include Lloyds Banking Group’s International Wealth business in the UAE, as the Group has made a commitment to continue to invest in its Wealth business in the region to realize its growth potential.

This includes its Private Banking branch in the DIFC and its offshore International Personal Banking service, which comprises its International Accounts and other associated offshore services.

Commenting on today’s announcement, Richard Musty, Country Head in the UAE, said: “The Group’s decision to sell the onshore UAE presence follows its Group Strategic Review, announced on 30 June 2011, when it committed to simplify its international footprint.”

He added: “We remain committed to ensuring the very best customer service and care and customers will see no change in our operations during this time.” The Group undertook a strategic review of its operations in the UAE and this review determined that a sale of the onshore UAE presence would provide the best outcome for the Group and its employees, customers and shareholders.

Following a competitive sales process, HSBC was selected. HSBC’s standing as a well-known and highly regarded financial institution was an important consideration for the Group, as it wanted to ensure that customers affected by its decision to sell would continue to receive the same high quality service from the purchaser as they have received to date.

Lloyds Banking Group currently employs 256 people in the Region of which 23 currently work in its International Wealth and Wholesale operations and will be unaffected by this transaction. Until discussions with HSBC conclude and regulatory approval is received, it is not possible to state how many of the 233 employees who work in the onshore business will secure a role with HSBC.

Richard Musty concluded, “We remain fully committed to our International Wealth business in the UAE which will continue to employ a highly professional and experienced team currently based in the region. We have clear growth plans for it as we firmly believe we have the right to win in the Middle East market and we will invest further in this business to help this business grow in the years ahead.”