HSBC makes strong progress to Asia wealth drive
KUCHING: HSBC’s wealth business in Asia has delivered a strong start in the first quarter of 2021 since the roll out of its US$3.5 billion investment plan.
Wealth and Personal Banking (WPB) is on track to hire over 1,000 client-facing wealth roles in Asia by the end of 2021 as part of the bank’s strategy to become the leading wealth manager in the region by 2025.
In February 2021, HSBC announced that it plans to hire more than 5,000 client-facing wealth roles in the next five years, including relationship managers, investment counsellors and specialists to better support affluent, high net worth and ultra-high net worth clients in Hong Kong, mainland China and Singapore.
In 2020, HSBC held the largest pool of client assets across the wealth continuum of mass affluent to ultra high net worth clients in Asia at US$488 billion.
“Our US$3.5 billion investments are underway, enabling us to deliver a robust start in Asia this year across the full spectrum of our wealth clients, with new digital wealth capabilities, innovative products and the expansion of our omni-channel distribution, including boosting our wealth frontline teams,” Asia Pacific’s Wealth and Personal Banking regional head Greg Hingston said.
“As the leading wealth manager across the full wealth continuum in Asia, we are seeing increased trading and investment activity from new and experienced investors on mobile and communicate with our relationship managers and wealth specialists for more sophisticated needs.”
Asia remains the key growth engine for WPB, delivering US$1.2 billion of Adjusted Profit Before Tax in the first quarter of 2021 (1Q21), two thirds of global WPB profits.
Wealth revenues in Asia surged by 57 per cent year on year to US$1.5 billion while Asia wealth balances grew 18 per cent, contributing nearly half of the global US$1.6 trillion of Wealth Balances.
At present, about 80 per cent of retail wealth sales in Asia Pacific are conducted through digital channels as clients and investors expect seamless access to financial and wealth products.
HSBC’s private banking business in Asia attracted US$6.6 billion of net new money (NNM) in 1Q21, up 89 per cent year on year, comprising half of global NNM. In the same period, HSBC Asset Management recorded an over four-fold increase of NNM to US$3.3 billion in Asia, contributing 29 per cent of global inflows.
Leveraging its strengths as a global universal bank, HSBC continued to attract and deepen client relationships through cross-business referrals from existing commercial, corporate and institutional clients.
“Our unique advantage lies in our ability to serve the entire progression of wealth needs - from first time investors to mass affluent families to high net worth and ultra high net worth clients and their businesses, allowing us to grow with them at every stage of their wealth journey.
“Combined 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.”
HSBC’s leading Private Banking franchise in Asia and in-house manufacturing strengths in Insurance, Asset Management and strong collaboration with Global Markets continue to play a key role in building a leading wealth business in Asia.
Global Markets is also a leading provider of sustainable investments across asset classes, including Asia’s first RMB green certificates of deposit for retail investors in Hong Kong in the first quarter of this year.