HSBC plans retail wealth headcount boost; eyes Singapore expansion
HSBC Holdings PLC plans to boost its Asia retail wealth management staff by about 300 by end of this year, with Europe`s biggest lender by assets sharpening its focus on Singapore to add to its presence in core markets of Hong Kong and China.

HSBC Holdings PLC plans to boost its Asia retail wealth management staff by about 300 by end of this year, with Europe`s biggest lender by assets sharpening its focus on Singapore to add to its presence in core markets of Hong Kong and China. London-headquartered HSBC, which makes more than 80% of its profit in Asia, will boost its wealth staff in Singapore by 50 and launch new digital offerings this year, said Kevin Martin, Asia Pacific head of retail banking and wealth management.
While HSBC did not disclose its wealth management headcount in Singapore at present, the bank`s business of offering advice and investment products to affluent clients in the city-state is smaller compared to its presence in China and Hong Kong. "It`s fair to say that our entire business in Singapore underperformed, and we haven`t hidden from that fact," Martin told Reuters in a recent interview, referring to the bank`s retail banking and wealth management unit.
"As we build Asia wealth ... there is a really significant opportunity in Singapore, not just onshore Singapore, but offshore Singapore," he said, adding the bank expects the country to be a "growth engine" over the next few years. HSBC`s retail banking and wealth management division serves clients with less than $5 million of investable assets, while those with more than that threshold are taken up by the bank`s private banking unit.
Chief Executive John Flint last year said building a leading wealth management business, mainly in Greater China and Southeast Asia, was key for accelerated revenue growth in Asia, where individual wealth is growing at the fastest pace globally. Singapore`s high net worth population, those with investable assets of $1 million or more, rose 11.5% in 2017, as per consultant Capgemini`s latest wealth report, ahead of China`s 11.2%, Japan`s 9.4% and Australia`s 9.2%.
Of respondents in a survey conducted by trade publication Asian Private Banker in July last year, 58% ranked Singapore as the most preferred offshore wealth management hub, followed by Hong Kong, Switzerland and London. HSBC is looking to target both onshore as well as offshore clients, with a large number of rich individuals in China, India and other Southeast Asian nations looking for wealth management services in Singapore, Martin said.
In Singapore, HSBC will compete with global rivals such as Citigroup Inc and Standard Chartered PLC, as well as Southeast Asia`s biggest lender DBS Group Holdings Ltd which has a strong presence in the mass-affluent wealth management business. As part of its plans to grow its Asia wealth business, HSBC also intends to ramp up its insurance distribution and product offerings in Hong Kong, China and Singapore this year, Martin said.
HSBC`s life insurance business within the wealth management unit posted 66% growth in revenue to $793 million in the first quarter of this year compared to the year-earlier period. "We are not even partly done in terms of the upside for insurance ... And as we have increased distribution, provided all products and put digital capabilities in place and promoted the brand, the growth you see will continue."
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES

LIC Saral Pension Plan: How to get Rs 64,000 annual pension on Rs 10 lakh one-time investment in this annuity scheme that everyone is talking about

Rs 1,500 Monthly SIP for 20 Years vs Rs 15,000 Monthly SIP for 5 Years: Know which one can give you higher returns in long term

LIC Saral Pension Plan: How much should you invest one time to get Rs 64,000 annual pension for life?

Income Tax Calculations: What will be your tax liability if your salary is Rs 8.25 lakh, Rs 14.50 lakh, Rs 20.75 lakh, or Rs 26.10 lakh? See calculations

8th Pay Commission Pension Calculations: Can basic pension be more than Rs 2.75 lakh in new Pay Commission? See how it may be possible

SBI Revamped Gold Deposit Scheme: Do you keep your gold in bank locker? You can also earn interest on it through this SBI scheme
05:58 AM IST