FirstRand secures final approval to acquire HSBC South Africa, including clients, assets, and staff, as HSBC exits amid tough local competition.
RMB to lead integration, gaining key multinational and corporate clients full transition expected by October 2025.
Acquisition supports FirstRands strategic growth, with minimal capital impact and expanded reach in corporate banking.
FirstRand, a leading financial services group led by South African banker Mary Vilakazi, has received final regulatory approval to acquire the local operations of HSBC HSBC South Africa, including its client base, assets, liabilities, and staff.
The move follows HSBCs announcement on Sept. 26, 2024 , to exit the South African market, citing difficulties in gaining ground amid stiff competition from entrenched local players. The deal marks a significant step for FirstRand, especially in strengthening its position among large South African corporates and multinational firms doing business in the country.
Corporate banking expansion led by RMBAt the heart of the transaction is Rand Merchant Bank RMB, FirstRands corporate and investment banking arm, which will lead the integration. RMB will take over HSBC South Africas clients, most of whom are multinational subsidiaries and large local corporates. The process is expected to be completed by Oct. 31, 2025.
Clients affected by the transfer will continue to have access to critical corporate banking services during the transition. Those headquartered outside South Africa will retain access to HSBCs global digital platforms for viewing accounts and initiating payments in South Africa, even after the handover to RMB is finalized.
RMB CEO Emrie Brown said the transaction fits well with the banks plan to grow its corporate banking footprint. This is an opportunity to serve more multinationals operating locally and to support the broader growth of our corporate banking business, she noted.