The Express Tribune > Business > Pakistan operations: Meezan Bank agrees to acquire HSBC Bank Oman

Pakistan operations: Meezan Bank agrees to acquire

HSBC Bank Oman
By Our Correspondent Published: June 27,
2015

287
SHARES

SHARE

TWEET

Owned 51% by HSBC Holdings, HSBC Bank Omans operations in Pakistan consist of only one branch. PHOTO: REUTERS

KARACHI: Meezan Bank has signed an agreement with HSBC Bank Oman to
acquire the latters banking business in Pakistan, a stock filing said on Friday.

Owned 51% by HSBC Holdings, HSBC Bank Omans operations in Pakistan

consist of only one branch. At the end of the first quarter of 2015, the bank had
gross assets amounting to Rs4.1 billion. The acquisition is expected to

materialise in the second half of 2015 subject to regulatory approvals.

HSBC Bank Oman currently operates in Oman, India and Pakistan. It decided
in 2012 to sell off its India and Pakistan operations. It signed an agreement to
sell its banking business in India to Doha Bank QSC in April last year.
Separately, HSBC Oman announced in November that it was in discussion
with Meezan Bank regarding the possible sale of its operations in Pakistan.
Read: Different categories: Meezan Bank wins several awards
Earlier on, Meezan Bank also acquired Pakistan branch operations of HSBC
Bank Middle East in October. This resulted in all customers of HSBC Pakistan
automatically becoming customers of Meezan Bank.
An indirect, wholly owned subsidiary of HSBC Holdings, HSBC Bank Pakistan
consisted of as many as 10 branches and had total assets of Rs48 billion at the
end of 2013.
Meezan Bank stated at the time it intended to make the operations of HSBC
Shariah-compliant while ensuring that the existing customer base continued to
receive uninterrupted banking services.

Meezan Bank already had the experience of acquiring a foreign bank and
converting its operations from conventional to Islamic. It acquired Societe
Generale in Pakistan through a similar transaction in 2002.

According to Reuters, the sale of HSBC Bank Pakistan was part of a strategy
by Europes biggest bank to exit from countries where it is unprofitable or lacks
scale.
Being the second most populous Muslim country, Pakistan has been a
profitable market for Islamic banks. As many as five Islamic banks operate in
Pakistan while 14 conventional banks offer Islamic banking services through
window operations.
Read: Inside job: Millions looted as security guard breaks into bank lockers
Deposits of Islamic banking institutions crossed the Rs1-trillion mark for the
first time, registering year-on-year growth of 23.3% in 2014. Meezan Banks
deposits rose 31.2% to Rs380.4 billion at the end of 2014. According to the
latest quarterly results, Meezan Bank recorded growth of 18.7% in its after-tax
profit that stood at Rs1.3 billion for January-March.
Like HSBC Bank Pakistan and HSBC Bank Oman, Europe-based Barclays
Bank has also left the Pakistan market for good by selling its operations to
Habib Bank recently.
Published in The Express Tribune, June 27th, 2015.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed
and join in the conversation.

Recommended Stories
Corporate corner: Meezan Bank offers online facility
The digital form will automatically be transmitted to the branch, where
the applicant wants to open his account

Corporate results: Meezan Banks profit increases

18.7%
It earns Rs1.3 billion in January-March quarter.

Robert Mazur: The man behind the downfall of a

Pakistani's greatest commercial achievement
Former US customs agent, Robert Mazur, reflects on the past; says it
wasn't personal .

You May Like

Assurance Auto Pas Chre. Jusqu' 40% d'conomie!

Koego

Sponsored Links by Taboola

Vans Triple Crown To Begin With High Performance Surfing at Hawaiian Pro
World Surf League

Free Yourself From Pain!

Ace Profits Academy

Could You Be A Surrogate? Find Out Today!

Center for Surrogate Parenting

Center for Surrogate Parenting

Reader Comments (1)

ALL COMMENTS

READER'S RECOMMENDATIONS

the Skunk
Jun 27, 2015 - 11:57AM

Reply
Viva! Bravo! Meezan bank is strongly going ahead. All the very best fortunes for the future. Salams
Recommend

Leave Your Reply Below

Name (required)
Email
Location
Web
Your comments may appear in The Express Tribune paper. For this reason we encourage you to provide your city. The Express
Tribune does not bear any responsibility for user comments.

Notify me of followup comments via e-mail

Post comment
Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our
Comments FAQ.

Most Read
1

Blasphemy allegations: Mob torches factory in Jhelum

Abdul Aziz gives govt two weeks to fulfill demands

The 'un-Islamic' lifestyle of Paris attackers

Senior PPP leader Amin Fahim passes away in Karachi

Man pushes Muslim woman into oncoming underground train in London

After factory, mob torches Ahmadi place of worship in Jhelum over blasphemy
allegations

Vietnamese man posts passport on Facebook to prove his 'weird' name is real

Heinous crime: Woman allegedly raped, killed by boyfriend

US marine burns Trump with response to Muslim ID card comment

10

Ready to work in Pakistani films: Ranbir Kapoor

Like Us On Facebook
Follow Us On Twitter

Ads

Online Trading Platform

Plus500 #1 Cfd Trading
Platform. Be smart, Your
capital is at risk.
www.plus500.com

Opal Events & Summits

Conferences For Finance,
Investment & Asset
Management. Register
Today
www.opalgroup.net

2015 The Express Tribune.

Technical feedback? webmaster@tribune.com.pk