HSBC has confirmed that it will sell its majority stake in Iraq-based Dar Es Salaam Investment Bank (DES).

HSBC owns shares representing 70.1% of the issued share capital of DES as at 31 December 2012.

The British bank, which had a partnership with DES since October 2005, took the decision to sell the stake subsequent to a strategic review.

HSBC further advised DES that it will not subscribe to any offer of shares by DES as part of its proposed capital increase.

The pulling out of stake from DES is in sync with the bank’s three-year global restructuring process, where it plans to reduce retail banking business in certain Middle Eastern countries and merge its operations in Oman with a local bank.

The bank has also limited its Islamic banking operations.