BOC branches into private banking
Bank of China branches into private banking, eyeing the one million individuals on the mainland with at least US$2 million to invest
While investment banks across the town are laying off staff, Bank of China (Hong Kong) is on a hiring spree for its newly launched private banking business.
The lender, one of the largest retail banks in the city, yesterday announced the launch of private banking services for customers with at least US$2 million to invest.
Jason Yeung Chi-wai, a deputy chief executive of BOCHK, said the bank had already hired a team of 30, half of them experienced private bankers.
"This is a good time to start private banking as demand for such services is increasing on the mainland and elsewhere in the Asia-Pacific region," Yeung said.
He said industry surveys showed the Asia-Pacific region had 20 per cent of the 29 million high-net-worth individuals with wealth between US$1 million and US$50 million. Among them, one million were on the mainland, representing 3.4 per cent of the total.
"Mainland China is expected to surpass Japan to become the second-most wealthy country in five years. This will increase the demand for private bank services," he said.
Yeung said BOCHK was not inclined to acquire existing private banks because of operational difficulties that came with mergers.