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HSBC Bank Sells Armenian Branch to Ardshinbank CJSC

HSBC Bank Sells Armenian Branch to Ardshinbank CJSC

Ardshinbank, Armenia's largest banking group, has officially announced a binding agreement with HSBC Europe B.V., a subsidiary of HSBC Holdings plc, to acquire HSBC Armenia.

HSBC has agreed to sell its Armenian branch to Ardshinbank. The deal aligns with HSBC's broader initiative to redirect capital from non-core businesses to higher-growth opportunities worldwide.

The proposed acquisition, subject to regulatory and anti-trust approvals, is poised to accelerate Ardshinbank's growth trajectory. HSBC Armenia, with total assets of approximately AMD 290 billion, customer loans around AMD 185 billion, and customer deposits of about AMD 200 billion, presents a significant addition to Ardshinbank's operational and financial strengths.

Ardshinbank sees the acquisition as an opportunity to bolster its customer franchise. HSBC Armenia, which has catered to affluent retail customers and prominent Armenian corporates, provides a solid foundation for Ardshinbank to expand its wealth and personal banking services.

The transaction is expected to close within the next 12 months, marking a significant milestone for both financial institutions. All HSBC Armenia staff and customer relationships will seamlessly transfer to Ardshinbank upon completion of the deal.

Artak Ananyan, Chairman of the Management Board of Ardshinbank, expressed enthusiasm about the agreement, stating, "This transaction is about growth, and we look forward to welcoming HSBC Armenia employees to the Ardshinbank team. Our intention is to ensure a smooth and fluid transition for all HSBC Armenia customers who will continue to enjoy the benefits of local support and personalized services and Ardshinbank’s bespoke range of products."

The acquisition is guided by Latif & Company as the exclusive financial advisor to Ardshinbank, with legal counsel provided by Latham & Watkins. 


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