“While organic growth will continue to be a core expansion strategy for HSBC, mergers, acquisitions and disposals will be a key strategy to expand in new markets and to strengthen our existing business lines,” the bank’s Asia-Pacific co-CEO David Liao said in an interview with the Post. “We will only conduct a deal when the targets can be fully integrated into our existing businesses. At the same time, we will dispose of businesses in markets that do not have the scale or growth potential.”
The shopping spree is consistent with HSBC’s plan to grow its wealth management, family office and private banking business across the “fastest-growing” region worldwide, Liao said.
“Many entrepreneurs have established their businesses for decades and accumulated much wealth,” he said. “HSBC has developed a range of private banking, family office, wealth management and insurance services to capture these growing opportunities.”
HSBC investors reject proposal to spin off Asia business, raise dividends
HSBC investors reject proposal to spin off Asia business, raise dividends
“This reflects HSBC’s commitment to expand on the mainland as we believe the country will continue to open up its financial services sector, and the future growth will be huge,” Liao said.
HSBC to sell most US branches as it pares back business in America
HSBC to sell most US branches as it pares back business in America
The bank, which has been shedding units in North America, will continue to dispose of non-productive businesses. HSBC will complete the sale of its Canadian unit to the Royal Bank of Canada in the first quarter of 2024 after selling its Greece and Russia businesses in the first half of this year. It reached revised terms to sell its French retail business in June.
HSBC sold its retail and business bank in Mauritius to the Absa Group last month, and wound down its personal banking unit in New Zealand in June. Wholesale banking will continue in both markets, giving HSBC a footprint of 18 markets across Asia-Pacific.
These disposals form part of Quinn’s plan to streamline the bank’s operations and shift capital from underperforming businesses in the West to the growing Asia market.
Ping An’s push to split HSBC fails to resonate with bank’s investors
Ping An’s push to split HSBC fails to resonate with bank’s investors
HSBC operates in 62 countries and territories, but most revenue and profit are from Asia, particularly Hong Kong and the mainland. Hong Kong contributed to 29 per cent of the bank’s third-quarter earnings, when pre-tax profit rose 20 per cent to US$2.23 billion.
HSBC top brass urge Hong Kong shareholders to reject dividends proposal
HSBC top brass urge Hong Kong shareholders to reject dividends proposal
“We take the Hong Kong market very [seriously] and we will continue to invest here, [with] various schemes to support the local economy,” Liao said, adding that the bank’s philanthropy for supporting the city includes the HSBC Hong Kong Community Festival, which kicks off this Sunday in Central.
HSBC, which opened in Shenzhen in 1982, now operates in all 21 prefecture-level cities in Guangdong province. It will open the 25-storey new HSBC office tower in Qianhai next year.
“HSBC has a big operation in the Middle East with over 4,000 staff, and we are the trustee for the first Saudi ETF that listed in Hong Kong,” he said. “We have big operations in Singapore and India to help promote trade finance, wealth and other Southeast Asian businesses.”