The South African Reserve Bank (SARB) has formally gazetted the closure of HSBC Private Bank’s representative office in South Africa, marking the end of the institution’s physical presence in the country. The move follows the SARB’s decision to withdraw its consent for the bank to operate under Section 30(1)(b)(ii) of the Banks Act, effective 1 September 2025.
Section 30 of the Banks Act governs the regulatory framework for foreign banking institutions operating in South Africa through representative offices or branches. The withdrawal of authorisation signifies the final regulatory step in HSBC Private Bank’s exit from the local market.
This development comes on the heels of HSBC Bank’s broader exit from South Africa, announced in September 2024, after nearly 30 years of operations. HSBC first entered the South African market in 1995, and its departure marks a significant shift in the country’s financial landscape.
Transition to FirstRand
As part of its exit strategy, HSBC is transferring its South African client base, banking assets, liabilities, and employees to FirstRand, following regulatory approval granted in June 2025. These operations will be absorbed under Rand Merchant Bank (RMB), FirstRand’s corporate and investment banking division.
According to FirstRand, HSBC’s South African clients primarily consist of subsidiaries of multinational corporations and large domestic enterprises, making them a strategic fit for RMB’s portfolio.
This will ensure that the transferred HSBC clients will have ongoing access to corporate and investment banking services in South Africa.
HSBC’s multinational clients headquartered outside South Africa will retain access to their accounts via HSBC’s global digital platforms, ensuring continuity in account visibility and payment initiation post-transfer.
Broader Industry Trends
HSBC is one of several international financial institutions scaling back or exiting operations in South Africa. Other notable moves include:
- BNP Paribas SA, which closed its corporate and investment banking unit in May 2024.
- Barclays Plc and Standard Chartered Plc, both of which have reduced their footprint across Africa.
- Societe Generale SA, which is also downsizing its operations on the continent.
Local banks are undergoing similar transitions. Sasfin Bank has shut down its Business and Commercial Banking (BCB) division, while Bidvest Bank is being acquired by Nigeria’s Access Bank, pending final approvals.
New Entrants on the Horizon
Despite the wave of exits and consolidations, South Africa’s banking sector is also witnessing new entrants. Old Mutual’s OM Bank has officially launched, and several smaller banks are expected to begin operations in 2026 and beyond.
Sanlam, one of South Africa’s largest financial services groups, is preparing to offer banking services starting next year, aiming to tap into the country’s growing credit market. Meanwhile, retail giant Shoprite is expanding its footprint in financial services, with plans to launch more comprehensive banking offerings in the near future.
