HSBC Holdings Plc launched a strategic review of its retail and domestic corporate banking operations in Turkiye, the latest step in Chief Executive Georges Elhedery's push to shrink the lender's global footprint. The review covers the retail banking arm of HSBC Bank AS and its SME portfolio, with Bloomberg reporting that Emirates NBD is in talks to buy the operations. No decision has been reached, and wholesale banking in Turkiye remains unaffected.
HSBC Holdings Plc launched a strategic review of its retail and domestic corporate banking operations in Turkiye, the latest step in Chief Executive Georges Elhedery's push to shrink the lender's global footprint.
"The bank's strategy is to increase leadership and market share in the areas where it has a clear competitive advantage," HSBC said in a statement, adding that no decision has been reached on the future of the Turkiye retail business.
The review covers the retail banking arm of HSBC Bank AS and its portfolio serving small and medium-sized companies with primarily domestic needs. Wholesale banking, including investment banking, is not affected. Bloomberg has reported that Emirates NBD is in talks to buy HSBC's Turkiye operations.
The review extends a retreat that has seen HSBC exit retail banking in Sri Lanka, France and Bangladesh since Elhedery took over in late 2024. The lender is also assessing its position in Egypt. For Emirates NBD, acquiring HSBC's Turkiye business would expand its regional footprint in a market where the Dubai-based lender already has a presence.
The strategic reassessment, initiated by Elhedery in October 2024, aims to reduce HSBC's international footprint and focus on markets where the bank holds competitive advantages. HSBC shares fell 1.3% in London trading, extending their decline for the week.
The Turkiye review comes as HSBC continues to streamline globally. In May, OCBC Indonesia signed a deal to assume HSBC Indonesia's retail banking and wealth management operations. The bank has also restarted a disposal process for its Australian retail banking business, now focused on selling the loan book rather than the entire unit.
HSBC's Sri Lanka branch signed a binding agreement in September 2025 to transfer its retail banking operations to Nations Trust Bank. In July 2025, the bank declared its intention to withdraw from its International Wealth and Premier Banking operations in Bangladesh.
The lender's wholesale banking operations in Turkiye, which serve international companies investing in the country and Turkish firms expanding overseas, will remain unaffected by the review.
This article is for informational purposes only and does not constitute investment advice.
