Exclusive | HSBC on track to hire more than 1,000 Asian wealth managers this year in US$3.5 billion bet on region’s growing billionaires
- London-based lender is set to invest US$3.5 billion in its wealth management operations in Asia over the next five years
- Asia accounted for US$1.2 billion or two-thirds of HSBC’s adjusted profit before tax in the wealth and personal banking business in the first quarter
“Our US$3.5 billion investments are under way, enabling us to deliver a robust start in Asia this year,” Greg Hingston, regional head of wealth and personal banking business, said. “We are seeing increased trading and investment activity from new and experienced investors on mobile and, with our relationship managers and wealth specialists, for more sophisticated needs.”
In the first quarter, Asia accounted for two-thirds of HSBC’s adjusted profit before tax in the wealth and personal banking business, or US$1.2 billion, he added. Revenue in the Asian wealth business rose 57 per cent in the first three months of the year and wealth balances in the region increased by 18 per cent.
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Net new money in its private banking business in Asia increased by 89 per cent to US$6.6 billion in the quarter, while its regional asset management operations attracted US$3.3 billion, about 29 per cent of its global inflows in that business.
HSBC said in April that it would give family offices in Hong Kong and in Singapore greater access to its investment bankers in Asia as part of its enhanced wealth strategy, including offering institutional market access, prime services and private deals.
It also set up a new onshore private banking business in Thailand in the first quarter and unveiled a dedicated independent asset managers’ desk in Singapore to meet the needs of family offices and independent wealth advisers.
“With our established strengths in commercial, corporate and investment banking, and in-house insurance, asset management and markets, we’re able to bring the full extent of HSBC’s expertise and international connectivity to serve across the full spectrum of wealth management needs,” Hingston said.