15 March 2005
HSBC Investment Services (Africa) (Pty) Limited has agreed to sell its private client stockbroking, wealth management and portfolio management business in South Africa to Investec Limited. The deal is subject to regulatory approval.
The business had a net asset value of R17.3 million (US$3.01 million), approximately R2.9 billion (US$514 million) in funds under management and R12.1 billion (US$2.15 billion) in funds under administration at 31 December 2004, and currently has 39 employees.
Richard Adcock, HSBC's CEO for Sub-Saharan Africa, said: "HSBC established a branch in South Africa just over a year ago, serving corporate and institutional banking clients.
"We remain committed to the country but have made the strategic decision to concentrate on the Corporate, Investment Banking and Markets business. While this means that offering domestic private client services is no longer part of our long-term goal in South Africa, we are delighted that Investec will be taking on our clients and staff".
HSBC established a presence in Sub-Saharan Africa in 1981 and entered the South African market in 1995. In 2003, the Group expanded its regional services with the opening of a corporate and institutional bank in Johannesburg as a branch of HSBC Bank plc. The Johannesburg branch now acts as the regional management office for all of HSBC's Sub-Saharan Africa activities.
The two primary operating entities in South Africa are HSBC Bank plc, which offers corporate and institutional banking, investment banking, treasury and capital markets services to the HSBC Group's major multinational clients, large local corporate and financial institutions, and governments. Equities and research services are provided by HSBC Securities (South Africa) (Pty) Limited. The Group currently has 11 offices in South Africa.
