Emirates NBD expands Egypt reach with HSBC deal

Emirates NBD has agreed to acquire HSBC Egypt’s retail banking business, gaining its customer accounts, branches, cash machines and associated employees in a transaction expected to strengthen the Dubai-based lender’s position in one of the Arab world’s largest financial markets.
The acquisition will be conducted through Emirates NBD Egypt, the banking group’s wholly owned subsidiary. Completion is targeted for the second half of 2027, subject to approval from the Central Bank of Egypt, other regulatory clearances and customary closing conditions.

Financial terms were not disclosed by Emirates NBD. HSBC expects the disposal to generate a pre-tax gain of about $300 million, although the final amount could change depending on the portfolio transferred, market conditions and adjustments made before completion.

The agreement covers HSBC Egypt’s retail banking portfolio, its related branch and ATM network, customers and employees identified as relevant to the business. HSBC’s corporate and institutional banking operations are excluded and will remain under the group’s ownership.

Retail customers will not face immediate changes. Accounts, cards, digital banking facilities and other services will continue to operate normally during the transition period. Customers and employees are expected to receive advance notice before any operational changes are introduced.

The deal gives Emirates NBD an opportunity to expand without relying solely on opening branches and attracting customers individually. The acquisition adds an established portfolio of deposits, loans, credit cards and wealth-management relationships, while increasing the group’s physical distribution network across key urban centres.

Emirates NBD has operated in Egypt since acquiring BNP Paribas Egypt in 2013. The business was subsequently rebranded as Emirates NBD Egypt and developed retail, corporate, investment and digital banking services. Absorbing HSBC’s consumer operations could improve its scale in a market dominated by large state-controlled banks and several well-established private lenders.

The transaction also advances Emirates NBD’s international growth strategy. The group has been expanding beyond its home market through operations and investments across Egypt, Türkiye, Saudi Arabia and other jurisdictions. Its international plans have been supported by strong earnings, rising deposits and sustained growth in lending.

Emirates NBD recorded a net profit of 24 billion dirhams in 2025, an increase of 4 per cent from the previous year. Gross loans rose 24 per cent to 658 billion dirhams, while deposits increased 18 per cent to 786 billion dirhams. Total assets reached 1.16 trillion dirhams at the end of the year.

The group has also pursued a proposed $3 billion investment for a controlling stake in RBL Bank, underlining its willingness to use acquisitions to enter or deepen its presence in high-growth markets. Its expansion reflects a broader move by Gulf banks to diversify earnings, serve cross-border clients and capture trade and investment flows linking the Middle East, Africa and Asia.

Egypt offers substantial long-term potential because of its population of more than 100 million, expanding digital payments sector and relatively low level of formal financial inclusion. Banks have been investing in mobile applications, instant payments, cards and electronic merchant services as authorities seek to reduce dependence on cash.

The country’s banking industry has nevertheless faced pressure from inflation, currency depreciation and elevated interest rates. The pound has undergone several adjustments since 2022, raising operating costs and affecting borrowers’ repayment capacity. Banks with strong capital positions and access to international funding may be better placed to manage those risks and invest in technology.

HSBC began reviewing its Egypt retail business in October 2025 as part of a global programme intended to simplify operations and concentrate resources in areas where it holds a stronger competitive advantage. Similar reviews covered consumer banking activities in Australia, Indonesia, Sri Lanka and Bangladesh, while the group separately moved to divest its retail operation in Bahrain.

The London-headquartered bank has maintained a presence in Egypt since 1982. It will continue serving multinational companies, large domestic businesses, financial institutions and other wholesale clients after the retail sale. Its remaining operation will focus on corporate finance, transaction banking, international trade and investment flows.

HSBC has described Egypt as a market with significant growth potential despite its decision to dispose of the consumer franchise. Retaining the corporate and institutional business allows the group to connect companies operating in Egypt with its international network while reducing the capital, technology and branch-management demands associated with mass-market banking.