HSBC secures Lloyds takeover in the UAE

16/11/2012 - Dubai Investment News Posted by Bob Brunskill
HSBC secures Lloyds takeover in the UAE

HSBC has been given the green light to take on Lloyds TSB Middle East's onshore assets and liabilities in the UAE.The company received approval from the UAE Central Bank and a deal said to be worth $769 million (£484 million) can now be finalised.Details of the agreement were first revealed in March 2012 and it is thought that Lloyds bosses were keen to exit 15 of the markets it currently operates in, the Khaleej Times reports.HSBC confirmed it has opened its new Jumeirah branch this week, although Lloyds customers will still be able to use the facility as normal.Chief executive officer of HSBC UAE Abdulfattah Sharaf was pleased that the acquisition could finally go ahead."This announcement marks an important milestone in HSBC's history in the UAE," he remarked."HSBC first opened for business here in 1946 and has a record of long term commitment and investment in the UAE. I thank the Central Bank for its support and encouragement of HSBC's continuous growth in the UAE."Head of retail banking and wealth management at HSBC UAE Rick Crossman said the Jumeirah branch will have a positive impact on the company's Dubai-based customers, who will benefit from the firm's 24/7 Express Banking Service.Mr Crossman added that the branch has been opened in one of the emirate's most attractive locations.The business acquired from Lloyds includes around 8,800 commercial and personal customers, as well as a loan book in the region of $573 million.Earlier this month, HSBC released a report that highlighted the strong economic performance of the UAE in October.It showed the country's non-oil private sector economy expanded during the month and it also indicated that input price inflation was at its slowest pace since July.This followed on from another strong performance in August, when output, orders and employment were all on the rise in the UAE's non-oil sector. It was the 31st consecutive month that production levels had risen throughout the economy.