HSBC targets China's wealthy with new powerhouse
HSBC is looking to better tap into China's growing wealth both at home and abroad by combining its private bank with its wealth management and retail banking businesses.
Charlie Nunn, the chief executive of HSBC's new wealth and personal banking unit, told the South China Morning Post that the combined business can become a "real powerhouse" in the wealth space with the goal of increasing revenue by "double digits".
The move comes as HSBC prepares to cut 35,000 jobs globally, reducing headcount to around 200,000. The Asia-focused lender reported 33% lower pre-tax profit of $13.35bn for 2019.
We want to deliver on the growth that we've been achieving, grow faster and be able to do more for our customers"
The new $1.4trn combined unit - Wealth and Personal Banking - will cover the entire spectrum of private wealth, from retail clients to UHNW individuals. The $5m minimum threshold will still apply.
"We want to deliver on the growth that we've been achieving, grow faster and be able to do more for our customers at a very simple level and then have a combined business that now really enabled us to compete at the top of the wealth franchise and grow and capture some market share," Nunn told the paper.
The latest strategy update, announced last month, is the third reorganization for the global lender in a decade as interim chief executive Noel Quinn attempts to lift profitability and win the top job at the bank.
HSBC's global private banking division attracted $23bn net new money last year, with two thirds of which coming from Asia. In fact, the region recorded 22% more client assets totalling $151bn.
However, Hong Kong, the bank's largest market, has been hit hard by months of anti-government protests and the coronavirus epidemic, which has infected more than 86,000 people worldwide.
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