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HSBC Targets Growth In Double-Digit For Its Wealth Asset Growth In Asia By 2023

HSBC Targets Growth In Double-Digit For Its Wealth Asset Growth In Asia By 2023
The newly combined wealth business in Asia Pacific of HSBC Holdings PLC is expected to achieve double-digit asset growth over the next three years, the company said.
In an interview to the media, the unit’s regional head said that the company aims to increase its market share in this business among the growing number of wealthy people in the region.
The wealth and personal banking unit was created by the Asia-focused lender in February by merging of two of its business units – the global private banking and retail wealth businesses of the bank. This move was a part of the radical strategy for overhauling at the largest lender of Europe in terms of assets.
Assets worth about $1.3 trillion globally was the value of the combined new wealth business of the lender which came into effect on May 1. Almost half of that combined wealth of from Asia and among that, the majority is accounted for by the mass affluent customer base of the company which is a fast-growing segment.
Greg Hingston, regional head of wealth and personal banking business said that the plan of the bank is to turn its complete focus on clients with investable assets of over $1 million as the lender now set its aim to become the leading wealth management banker in the Asia Pacific region in the medium-to-long.
"With the combination, there is a big, big focus on family offices going forward. And it all fits within that focus around increasing penetration into the high and ultra-high networth segments," said Hingston, who took over the new role on April 1.
The bank is yet to report the historical data for the combined wealth business. In the first quarter of the current year, there was a 6 per cent growth in the global retail wealth assets of the bank ay reach a total of $480 billion. In the same period, there was a 2 per cent drop in the private banking client assets which dropped to $329 billion.
Hingston said an increase in the usage of digital technologies by its wealth management clients was witnessed during the forts quarter even though the novel coronavirus pandemic had caused severe disruption to the normal trade and banking services of the bank.
During the first quarter, there was a 65 per cent growth in the average monthly forex transaction value that was made through digital channels by its wealth management clients in Hong Kong, which is the biggest market of the bank. In the same period, there was a growth of 63 per cent in monthly equity trading turnover of the lender.

Christopher J. Mitchell

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