Financial giant HSBC ramped up its investment in wealth and personal banking international business in recent years and it believes it can «take it much further».
With 40 percent of wealth and personal banking revenue coming from international customers, HSBC plans to take this further, especially in Asia where there is growing demand for wealth management services, said its group CEO.
The UK-based bank ramped up its investment in wealth and personal banking international business in recent years and it believes it can «take it much further», Noel Quinn, HSBC group chief executive told shareholders in a pre-recorded video during a shareholders' meeting held in Hong Kong yesterday, April 3. The meeting was held ahead of the bank’s group annual general meeting scheduled on May 3.
Building The Wealth Business
That includes building the bank’s wealth business to meet the strong demand for wealth management services with a focus on Asia. The bank’s international banking proposition launched last year will also be further strengthened, Quinn added.
The bank believes wealth in Hong Kong and mainland China will continue to grow, driven by urbanization across China and the increased use of the Connect schemes in Hong Kong with Hong Kong’s key role in facilitating investment via trade corridors.
Untapped Opportunity
Quinn said there is a significant amount of untapped opportunities from the bank’s existing client base, which can «drive revenue growth in the face of declining interest rates.» At the global level, HSBC currently ranks number one for trade, second by revenue in its payments business and has been number three globally by revenue in FX since 2021.
The bank has no plans to spin off its Asian business as there is «no appetite» among its shareholder base as shown in last year’s AGM results to vote for a spinoff, said the bank’s group Chairman Mark Tucker who addressed the shareholders meeting.
Building The Wealth Business
HSBC defeated a resolution last year from Hong Kong-based shareholders and backed by major investor Ping An to potentially spin off its lucrative Asia business.
In February, HSCB reported its 2023 pretax profit increased 78 percent to $30.3 billion but this was still lower than the projected $34.1 billion, largely a result of the $3 billion impairment on its stake in China's Bank of Communications, according to a «Reuters» report.
