The Central Bank of Armenia has given the green light to HSBC's decision to sell its Armenian subsidiary, marking the end of the British banking giant's nearly three-decade presence in the country. In February, HSBC, Europe's largest bank, announced its intention to sell HSBC Armenia to Ardshinbank, Armenia's leading bank. This strategic move is part of HSBC's plan to shift focus from less strategic operations to higher-growth opportunities globally.

Ardshinbank has confirmed the acquisition, with its chief executive assuring a "smooth and fluid transition" for HSBC Armenia's approximately 30,000 customers. The deal's financial terms, which are still subject to final regulatory approvals, have not yet been disclosed.

According to an official statement, the Central Bank's governing board granted preliminary consent to the acquisition during a meeting on Tuesday.

HSBC Armenia, established in 1996, is the only local commercial bank controlled by a major Western banking group. The bank's assets are valued at AMD290bn ($720mn) and customer deposits amount to approximately AMD200bn.

In recent years, HSBC Armenia has notably improved its financial performance, with net profits rising from AMD8bn in 2022 to over AMD11bn ($27mn) in 2023. In comparison, Ardshinbank reported earnings of nearly AMD63bn last year.

HSBC's exit from Armenia is part of a broader strategic realignment. The bank is considering withdrawing from several countries, including France, Canada, Russia and Greece. The bank completed the sale of its French retail operations in January 2024 and recently received Canadian approval for the sale of its Canadian unit.