Asian riches are a major priority for HSBC and the bank is seeking to aggressively increase investments in the region, according to its global private banking and wealth chief Annabel Spring.
As a major Asia-focused financial group, the region is naturally a top business source for HSBC. And according to its global private banking and wealth CEO Annabel Spring, it will continue to be a priority for future investments.
«We want to be a leading private bank for Asian, international and entrepreneurial clients globally,» Spring said during a session at the «Bloomberg Wealth Asia Summit» attended by finews.asia. «We are heavily doubling down on Asia.»
Growth Rate
Currently, HSBC manages around $1.8 trillion in wealth with Asia accounting for a large portion. In the first quarter of 2024, the bank recorded net new invested assets of $27 billion, including $19 billion from the region.
According to Spring, the broader Asian market is forecasting an annual increase of 8-10 percent in assets under management over the next five years and she expects HSBC to outpace this growth.
Competitive Advantages
In terms of achieving this growth and increasing its market share, Spring outlined three competitive advantages that HSBC will leverage to meet its goals.
Firstly, is its strength in Asia which has seen continued expansion in markets such as onshore private banking in India and China. Secondly is its international connectivity which is supported by Asian desks in Europe and the US. Thirdly, it is focused on internal collaboration, including with the global business banking arm.
Business Risks
Although the bank is optimistic about owning a global business that connects the East and the West, this is not without its risks. HSBC has previously been in the crosshairs of international tensions with examples like account closures amid the 2019-2020 political unrest in Hong Kong or the Huawei debacle and the extradition battle of Meng Wanzhou, daughter of the smartphone company’s founder Ren Zhengfei.
Nonetheless, Spring is confident that the British lender will be able to navigate through such challenges.
«We’ve been around for over 150 years. We've seen a few things,» she commented. «We will continue to invest to connect the various parts of the world and we advise our clients, as we advise ourselves, to continue to diversify.»