FirstRand receives approval to acquire HSBC South Africa branch

FirstRand Limited (JSE: FSR) announced it has received regulatory approval to take transfer of the clients, banking assets and liabilities, and employees of HSBC South Africa branch. The transaction, initially announced on 26 September 2024, will see FirstRand's Rand Merchant Bank (RMB) integrate HSBC South Africa's clientele, which includes subsidiaries of multinationals and large domestic corporates. This acquisition ensures transferred HSBC clients continued access to corporate and investment banking services within South Africa. HSBC's multinational clients headquartered outside of South Africa will maintain connectivity through HSBC's global digital channels. RMB's Chief Executive Officer, Emrie Brown, noted that the acquisition aligns with RMB's strategy to scale its corporate banking business. FirstRand anticipates that the transaction will be completed by 31 October 2025, and expects the impact on FirstRand Limited's CET1 ratio to be no more than 20 bps.