HSBC, Europe's biggest bank is currently reviewing its 98.94% stake with the PT Bank in Indonesia. The Ekonomi Raharja is a small lender focusing on both small and medium sized enterprises after investment has reached a total of four years. HSBC is now directing towards cost reduction and selling off its assets. They are driven towards expanding to a fast growing market because lenders are currently crimped by the European debt crisis.
Stuart Gulliver, CEO of HSBC has already stated the company's plans of closing down fifty two businesses. This will be done by the end of the first quarter of this year. According to its latest annual report, the bank has current presence in twenty two countries in Asia. It has also gotten 87% of its pretax profit in the region last year.
In 2008, HSBC bought 88.9% stake of Bank Ekonomi at US$607.5 million. This was fully paid in cash.
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