Old Mutual Ltd. has postponed the launch of South Africa’s newest bank to the first quarter of next year as it works to finalize the lender’s top management and meet regulatory conditions.

Old Mutual will unveil South Africa’s newest bank in the first quarter of next year, intensifying competition in a country where 85% of residents have accounts with lenders. The continent’s largest insurer by assets has developed the bank’s core functions within a previously allocated budget of R1.

HSBC Holdings Plc agreed to sell its South African corporate branch unit to FirstRand Ltd. as part of its ongoing strategy to dispose of non-core assets.

HSBC has reached an agreement to transfer its business in South Africa to local lender FirstRand Bank Ltd, the British bank said on Thursday.