By Umair WOLID
- Rs. 18 Billion Deal: NTB signs binding agreement to acquire HSBC Sri Lanka’s retail banking business.
- 200,000 Customers will move : All retail clients, accounts, and credit cards to transition to NTB.
- Credit Card Market Leader: With HSBC’s portfolio, NTB will dominate the credit card space, offering Visa, MasterCard, Amex, and Diners Club.
- Private Banking Boost: HSBC Premier clients to seamlessly move into NTB’s established private banking services.
- Homegrown Pride: Funded entirely through NTB’s reserves “a dream deal” says CEO.
- HSBC’s Global Exit: Move aligns with HSBC’s strategy of retreating from retail banking in emerging markets.
Nations Trust Bank PLC (NTB) has entered into a binding Sale and Purchase Agreement with The Hongkong and Shanghai Banking Corporation Limited (HSBC), through its Sri Lanka branch, to acquire HSBC’s retail banking operations in the country.
The transaction, valued at Rs. 18 billion is expected to be finalized in the first half of 2026, subject to approval from the Central Bank of Sri Lanka and the fulfillment of other conditions precedent.
A Major Expansion for NTB
The proposed acquisition covers HSBC Sri Lanka’s retail banking business, including its premium banking segment (HSBC Premier), credit cards, retail loans, and accounts of approximately 200,000 customers. The deal also includes HSBC’s seven retail branches and an offer of employment to HSBC staff currently engaged in retail operations, ensuring a seamless transition for customers and employees.
NTB confirmed that the acquisition will be fully funded through internally generated reserves while maintaining all regulatory ratios. As of end June 2025, the bank’s retained earnings stood at Rs. 62.5 billion, with a deposit base exceeding Rs. 447 billion. John Keells Holdings remains NTB’s largest shareholder with a 56.4% stake.
“A Dream Fit” for NTB
Speaking to Newswire, NTB Director/CEO Hemantha D. Gunetilleke described the deal as transformational: “It’s a dream deal for NTB and we are super proud as a homegrown Sri Lankan bank to achieve this entirely with our own reserves. For us, it’s a perfect fit, scaling organically takes time, but an acquisition of this capacity makes us move faster and stronger in the market.”
He confirmed the back end operations of the transaction had been in motion for nearly six months.
Market Leadership in Cards and Private Banking
Gunetilleke also highlighted the strategic gains: “With HSBC’s credit card base moving to NTB, we will become the clear market leader in credit cards, offering the full spectrum of Visa, Mastercard, Amex, and Diners Club. We will also come with some strong offerings to the market.”
On the premium segment, he added “HSBC Premier clients will move into NTB Private Banking, where they can continue to enjoy the same levels of service. We’ve been in private banking for 25 years, and we have the firepower and expertise to grow this segment further.”
Customer and Staff Transition
HSBC has assured retail clients that their accounts, deposits, cards, and loans will continue as normal until the completion of the transaction. Once regulatory approvals are in place, these products will be transferred to NTB, with customers not required to take any immediate action.
On the employee side, HSBC retail staff will be offered severance packages, while NTB has committed to providing guaranteed employment opportunities and new career prospects, ensuring stability during the transition.
HSBC’s Future in Sri Lanka
While HSBC exits the retail sector, it will continue to operate its corporate banking business in Sri Lanka. The move is part of the bank’s global strategy of retreating from retail operations in emerging markets, including recent exits from Malta, Vietnam, and Bangladesh.
HSBC Sri Lanka CEO Mark Surgenor and NTB Director/CEO Hemantha Gunetilleke
Outlook
The acquisition positions NTB as the dominant force in credit cards and a stronger player in private banking, while expanding its reach by 200,000 new customers. Both banks are working closely to ensure a smooth transition across branches and digital banking systems, with completion targeted for the first half of 2026.
