HSBC Private Banking is embarking on an ambitious plan to increase its revenues in Asia by $1bn by 2020, as part of a re-focusing by the global bank on its Asian origins.
The bank’s Asian division is setting out to target Asian wealth by increasing its client-facing headcount by 65% over five years and a doubling of client assets in eight years.
Almost 50% of this is expected to come from the wealth management business and private retail banking services, with asset management and insurance making up a smaller percentage of expected revenues.
HSBC PB says it will focus on high-net-worth individuals (HNWIs) based in Singapore and Hong Kong, as part of a regional effort that is starting to refocus on markets in Thailand, Malaysia and Indonesia also.
HSBC has said it is allocating $100m in fintech development across the SE Asia region.
Last month, International Investment reported that, for the first half of 2018, HSBC Private Banking reported a 500% increase in year-on-year inflows in Asia. The bank told specialised media outlet Asian Private Banker that client demand was diversified across private markets and hedge funds.
Philip Kunz, HSBC’s head of global private banking for South-East Asia, who re-joined HSBC from UBS earlier this year, told Citywire: “As all of us have gone through a challenging period, it was extremely refreshing when our newly appointed group chief executive, John Flint, went on stage earlier on in the year and shared with us the group strategy.”
The renewed strategy for growth in Asia comes as reports suggest the bank is mulling a return to Brazil, as reported by International Investment last week.