FirstRand, a major South African bank, has received regulatory approval to acquire the clients, banking assets and liabilities, and employees of HSBC’s South African subsidiary. The approval, granted on Tuesday, June 10, 2025, allows FirstRand to begin integrating accounts belonging to multinational and large local companies previously managed by the British banking group.

The client portfolio mainly includes South African subsidiaries of international corporations and key domestic firms. Rand Merchant Bank (RMB), FirstRand’s investment and corporate banking division, will now oversee this portfolio.

RMB will continue to provide full banking services to the transferred clients, including account management, financing, and treasury operations. Clients based outside South Africa may continue to use HSBC’s global digital platforms to access accounts and process payments.

“This transaction fits with RMB’s strategy to scale its corporate banking business and increase its share of multinational clients operating in South Africa,” said Emrie Brown, CEO of RMB. The acquisition is expected to strengthen FirstRand’s market share and deepen its relationships with large corporates and multinational firms operating in the country.

To support the transition, FirstRand plans to allocate capital to cover any risks linked to the acquired assets. The group expects only a minor effect on its Common Equity Tier 1 (CET1) ratio, projecting a decrease of less than 0.2 percentage points.

This approval is part of HSBC’s broader plan to withdraw from the South African market. The bank began this process in September 2024, after operating in the country since 1995. The exit forms part of a wider effort to refocus its presence in Africa on selected priority markets.

The transaction between FirstRand and HSBC is expected to be completed by October 31, 2025.