HSBC Bank Panama
| Company type | Subsidiary |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1999 |
| Fate | Acquired by Bancolombia Group and rebranded as Banistmo (2013) |
| Headquarters | Panama City , Panama |
Area served | Panama |
| Products | Personal banking, Corporate banking, Treasury services |
Number of employees | 2300+ |
HSBC Bank (Panama) S.A. operated as a subsidiary under HSBC Holdings plc, with its headquarters located in Panama City, Panama. The institution provided a range of services including Personal banking, Corporate banking, and Treasury solutions within Panama. In 2013, the bank was acquired by the Bancolombia Group and subsequently rebranded as Banistmo.
History
The entrance of HSBC Group into the Panamanian market began in 1972 through the establishment of a representative office in Panama City. By 1973, it had secured licensing for banking operations in Panama City, expanding further into the Colón Free Trade Zone by 1993.
HSBC Panama was officially formed in 1999 as part of the HSBC Group’s worldwide branding initiative. The following year, HSBC expanded its presence by acquiring Chase Manhattan Bank’s Panamanian operations. In 2005, the bank diversified into personal lending by purchasing Financomer, a company founded in 1986.
In November 2006, HSBC acquired Grupo Banistmo, the leading banking group in Central America with operations spanning Colombia, Costa Rica, El Salvador, Honduras, and Nicaragua. The integration of Grupo Banistmo with HSBC Panama was finalized in 2007, and by 2009, Grupo Banistmo’s subsidiary Primer Banco del Istmo was fully merged into HSBC Panama.
After facing a $1.9 billion penalty in 2012 due to shortcomings in anti-money laundering controls, HSBC declared its intention to sell its Panamanian operations to Bancolombia for $2.1 billion in February 2013. This sale encompassed HSBC Bank (Panama) S.A., Financomer S.A., HSBC Seguros Panamá S.A., and HSBC Securities Panamá S.A., aligning with HSBC’s objective to streamline and scale back its presence across Latin America. The transaction was completed in October 2013, at which point HSBC Panama was rebranded under the Banistmo name.
At the time of rebranding, HSBC Panama ranked as the second largest financial institution in Panama based on loan and deposit market share. It employed more than 2,300 staff members and served approximately 420,000 customers through a network of 57 branches and 264 ATMs.