Asia focused HSBC is keen on making acquisitions in wealth and asset management. Over the past few years while HSBC was naval gazing, Asia has seen several deals completed. Has HSBC missed the boat again?
The main thrust of HSBC's attention over the past few years was whether the bank was going to move out of London, perhaps even relocate back to its spiritual home of Hong Kong.
As we now know the bank chose to stay in London justifying the decision at the time as it is a major financial centre and Britain looked unlikely to leave the E.U., and then along came Brexit.
The Cupboard Might Be Bare
In the meantime DBS, The Bank of Singapore, Union Bancaire Privee and LGT have all snapped up wealth management businesses across Asia, as ANZ, Barclays, Coutts International and ABN Amro decided on their own «Asianexit».
In a report from «Bloomberg» HSBC is now said to be looking at making three to four deals to expand in asset and wealth management to take advantage of the growing funds of the middle class in Asia.
More Competition, Fewer Prizes
On the surface however there does not appear to be much left to buy, and the aforementioned banks are probably more nimble and well versed in the purchase process than the London headquartered bank which has been in a cost cutting and restructuring mode.
If HSBC does throw its hat in the ring for the next wealth or asset manager that decides it cannot cut it in Asia, it will find out that there is plenty of competition and the premium might be hard to justify to those 10,000 kilometres away in Canary Wharf.
