CIB is set to begin due diligence on HSBC Egypt’s retail banking portfolio, the EGX30 bellwether said in a regulatory filing (pdf), noting it has received the go-ahead from the Central Bank of Egypt to kick off the process. It’s the first formal confirmation that a process which could see HSBC divest its retail franchise here has moved beyond the exploratory phase.

As you’d expect, HSBC is keeping its cards close: “The strategic review of our retail banking business is ongoing,” the bank tells us. “The review is considering all options for our retail business, and no decisions have been made. Further announcements will be made if or when necessary.”

Whatever happens with retail, HSBC has made clear it’s not leaving Egypt. CEO Todd Wilcox and HSBC Middle East CEO Selim Kervanci told EnterpriseAM in an extended interview earlier this week that the bank remains “very committed to Egypt as a strategic market” and is focused squarely on its corporate and investment banking clients. Wilcox noted that more and more global manufacturers are coming to Egypt, attracted by the nation’s “clear competitive advantages.” HSBC Egypt bankers report that appetite has been even stronger so far this year than in 2025.

CIB is not the only potential suitor for HSBC’s retail business in Egypt if the latter decides to sell. Emirates NBD, QNB Al Ahli, and Fab Misr are all reportedly interested in the portfolio.

SOUND SMART- Fab Misr is now led in Egypt by Ahmed Issa, a former top CIB executive.

Kervanci, Wilcox, and HSBC Middle East Holdings Chairman Samir Assaf met earlier this month with Central Bank of Egypt Governor Hassan Abdullah and Finance Minister Ahmed Kouchouk, Assaf said, telling them, “We remain committed to Egypt as a strategic market as we continue to invest in our people and strengthen our capabilities [here].”

Our take: We’re good friends with the folks at HSBC Egypt — and at CIB. Fab Misr’s Issa is also a friend, and we’re honored to count a who’s who of top bankers among our readers. So… color us conflicted here. Still, two things are crystal clear to us. First, HSBC is serious when it says it has zero plans to exit Egypt, regardless of what it decides to do with its retail franchise. Second, we’re in the very early days of any potential transaction. People getting the green light to dial into a VDR are miles away from a sale. There’s a lot left for everyone to do — from offers submitted and reviewed to a decision to sell and obtaining CBE approval. Anyone doing due diligence is going to be bound by a strict NDA, so expect relatively little on-the-record news from here through execution. This is going to be one of the “big banking stories of the year” until much, much closer to year-end than we are now.

BACKGROUND- HSBC put its Egyptian retail operations in strategic review last October as part of a broader global simplification under CEO Georges Elhedery, who has been pulling the bank back from retail in most markets to focus on corporate and investment banking as well as its wealth business.

Tags: