HSBC deal elevates NTB to top of mid-sized banks
View(s):“The status quo will remain at all seven branches of HSBC but when the transaction is completed, an HSBC branch on a Friday will be rebranded as a NTB branch on Monday. Until then customers will be dealing with the same relationship manager and other staff and using the same staff (employed by NTB) when the transition takes place, would help in the relationship with customers when they move to NTB,” Hemantha Gunetilleke, Director/CEO of NTB told The Sunday Times Business in an interview.
Both NTB and HSBC on Wednesday released details of the transaction saying the transaction is expected to be completed in the first half of 2026 (in the next six months) subject to Central Bank and other required approvals. The proposed acquisition covers HSBC Sri Lanka’s retail banking business including premium banking customers, credit cards, retail loans and accounts of approximately 200,000 customers. The transaction includes an offer of employment to staff of HSBC Sri Lanka who are currently supporting its retail banking business. Some months ago, HSBC Sri Lanka said it was exiting from the retail business and looking for a buyer.
The deal will see NTB making strong gains in the credit card market. “We are strong in credit cards with a 15 per cent market share and with HSBC’s over 10 per cent share in credit card market that instantly raises a higher profile for us in this sector. With this deal, we are able to offer a wider range of products to the market in retail banking,” he said adding that this is an important milestone for the bank and a vote of confidence in NTB as HSBC is one of the largest banking groups in the world.
Mr. Gunetilleke said that at 25 years, NTB is a relatively young bank that acquired the Amex franchise and also Mercantile Leasing in the past.
“We feel this is an opportune time for a similar investment and acquisition. We have retail, consumer and corporate areas of business and particularly strong in retail in the premium sector. Acquiring HSBC Sri Lanka’s retail business provides a perfect match for NTB strength in the premium retail banking segment which goes by the brand ‘inner circle’,” he said.
HSBC’s 200,000 retail customers will add to NTB 400,000 customers and enhances the value proposition for the local bank, elevating the bank to number 4 position from number 7 among private banks in Sri Lanka and the top of mid-sized banks.
“While our balance sheet was strong for a mid—size bank, what we lacked was scale (number of customers). This instantly addresses that issue,” he added.
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