NTB announces Rs. 18 b deal for HSBC Sri Lanka’s retail banking business

Thursday, 25 September 2025 05:28 - - {{hitsCtrl.values.hits}}

Enters into Sale and Purchase Agreement; transaction to be completed by 1H 2026
Funded by internally-generated funds
Acquisition includes SL HSBC Premier customers, credit cards, retail loans, and 200,000 accounts
NTB agrees to absorb existing HSBC Sri Lanka retail banking staff
HSBC Sri Lanka tells retail customers transition will be smooth; nothing they have to do at this stage
NTB end-June 2025 retained earnings amounted to Rs. 62 b; deposit base at Rs. 447 b

NTB Director/CEO Hemantha D. Gunetilleke

Nations Trust Bank PLC (NTB) yesterday entered into a binding Sale and Purchase Agreement with Hong Kong and Shanghai Banking Corporation (HSBC), acting through its local branch HSBC Sri Lanka to acquire its retail banking business carried out in Sri Lanka for a consideration of Rs. 18 billion and applicable taxes if any.

This transaction was approved by the NTB Board of Directors on Tuesday, and will be funded by internally-generated funds, while maintaining all regulatory ratios.

In a statement, NTB said the transaction was expected to reach completion in the first half of 2026, subject to mandatory regulatory approval from the Central Bank of Sri Lanka and the satisfaction of other conditions precedent as set out in the Sale and Purchase Agreement.

The proposed acquisition covers HSBC Sri Lanka’s retail banking business including premium banking customers (HSBC Premier), credit cards, retail loans, and accounts of approximately 200,000 customers.

The transaction also includes an offer of employment to staff of HSBC Sri Lanka who currently support its banking business. This will ensure a smooth transition for customers.

“This acquisition will reinforce NTB’s leadership in the premium retail banking space and reflect its continued commitment to delivering exceptional value to clients,” NTB said.

The bank said it would make a further announcement upon the completion of the transaction.

NTB has a war chest (retained earnings) of Rs. 62.5 billion as of end-June 2025 and a deposit base of more than Rs. 447 billion. Top blue-chip John Keells Holdings is the bank’s largest shareholder with a 56.4% stake as of end-June.

HSBC Sri Lanka in an email to its retail clients said the products and services they currently have with HSBC Sri Lanka, such as bank accounts, deposits, credit cards and personal loans, will continue to be provided as normal until the sale is completed.

“During this period, we will work closely with NTB and the regulatory authorities to enable a smooth transition. At the end of this period, which we expect to be in the first half of 2026 (subject to receipt of regulatory approvals), your products will transfer to NTB who will continue to provide banking services to you. There is nothing you need to do at this stage. We will be in contact again once the required regulatory approvals have been obtained.”