By: Staff Writer
September 25, Colombo (LNW): In a landmark move that will reshape Sri Lanka’s retail banking landscape, Nations Trust Bank PLC (NTB) yesterday announced it has entered into a binding Sale and Purchase Agreement with the Hong Kong and Shanghai Banking Corporation (HSBC) to acquire HSBC’s retail banking business in Sri Lanka. The deal, valued at Rs. 18 billion plus applicable taxes, marks one of the largest transactions in the sector in recent years.
The agreement, signed through HSBC’s local branch, covers its entire retail portfolio including HSBC Premier clients, credit cards, retail loans, and approximately 200,000 customer accounts. In addition, NTB will extend offers of employment to HSBC staff currently supporting the retail business, ensuring continuity and a smooth transition for clients.
The transaction, approved by NTB’s Board of Directors earlier this week, will be funded entirely through internally generated earnings, while keeping the bank’s regulatory ratios intact. Completion is expected in the first half of 2026, pending approval from the Central Bank of Sri Lanka and fulfillment of other conditions laid out in the agreement.
“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 in a statement, noting that the deal strengthens its foothold among high-net-worth individuals and credit card users.
HSBC Sri Lanka has informed its retail customers that their existing accounts, deposits, loans, and card services will continue uninterrupted until the transaction is finalized. “During this period, we will work closely with NTB and the regulatory authorities to enable a smooth transition… there is nothing you need to do at this stage,” HSBC said in an email to its clients.
NTB enters this acquisition with a strong balance sheet. As of end-June 2025, the bank reported retained earnings of Rs. 62.5 billion and a deposit base exceeding Rs. 447 billion. Its largest shareholder remains John Keells Holdings, the blue-chip conglomerate, with a controlling 56.4% stake.
Industry analysts view the move as a strategic expansion for NTB, allowing it to capture HSBC’s premium retail clientele and bolster its market share in an increasingly competitive sector. For HSBC, the divestment reflects a broader global trend of streamlining operations and focusing on corporate and institutional banking in emerging markets.
While the acquisition still hinges on regulatory clearance, both banks have assured customers that services will remain stable and uninterrupted. NTB has pledged to provide further updates once the transfer process is formally completed.
If approved, the deal is expected to redefine the premium retail banking segment in Sri Lanka, bringing together NTB’s strong local footprint with HSBC’s well-established customer base.
