The FINANCIAL -- Bank Republic has purchased HSBC Georgia’s retail portfolio. The value of the gross assets sold to BR was 4.5 million USD.
This action has increased Bank Republic’s retail portfolio thus achieving 250 million GEL approximately.
According to Bank Republic CEO Christian Carmagnolle, BR has 90,000 active clients. The purchased portfolio from HSBC Georgia comes with 170 retail clients.
“The decision was made after HSBC decided to leave the Georgian market due to its limited market scale in September this year. With effect from 3 December, all HSBC Bank Georgia retail clients will continue to enjoy modern banking products and solutions, as well a high level service from BR. Furthermore, all HSBC Georgia retail clients will be able to apply for our full range of offers and banking services,” Carmagnolle said.
Corporate clients represented a main focus for HSBC Bank in Georgia. HSBC ’s exit of the Georgian banking market was a direct result of the continuing five-filter portfolio review announced at the Investor Day in May.
“Bank Republic aims to improve the relationship between bank and client, extend the network, design the most innovative and comfortable products and provide a high quality of service to the clients,” Carmagnolle said.
“At the moment our main aim is to inform all of the former HSBC Georgia’s retail clients about our transaction. All of them are welcome at our bank. We take care of clients. By our definition all of the Bank’s customers are free. It depends on their choice; they might stay and use our bank service or just leave. At the moment, one of our main aims is to attract the clients with our high level services,” Carmagnolle said.
According to Guy Lewis, the Chief Executive Officer of HSBC Bank Georgia, the changes in the Bank’s global strategy led to this move and he states that HSBC selected Bank Republic for its high-quality service and reliability.
“HSBC Bank Georgia did not wish to complicate things for clients, therefore it found a reliable bank for their transactions. BR is a subsidiary of one of the most famous banking institutions, Societe Generale Group. So we do think that we have made the best choice in selling our retail portfolio to such a reliable and high level bank,” Lewis said.
HSBC Holding plc, the parent company of HSBC Group, is headquartered in London. The Group serves customers worldwide from around 7,500 offices in over 80 countries and territories in Europe, the Asia-Pacific region, North and Latin America, the Middle East and Africa. With assets of 2,716 billion USD as of 30 September 2011; HSBC is one of the world’s largest banking and financial services organizations.
Bank Republic is one of the top five banks in Georgia with rapid expansion of operations in Retail and Financial Services in Georgia. The Bank employs more than 1,000 staff, serving its clients via 38 branches and service centres. According to the Bank’s representatives, for BR, the new acquisition is part of their 2011 strategy, which is to become the most powerful bank on the local market.
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