As the lender moves forward with its Asia pivot strategy, HSBC (HSBA.L) announced new aggressive plans to expedite the growth of its wealth business in China despite economic challenges and is on target to roughly quadruple its headcount by next year, according to its global wealth head.
Increase In Core Wealth
According to wealth and personal banking CEO Nuno Matos, the bank, which generates the majority of its revenue in Asia, intends to grow its core wealth business in India, where it reopened private banking services last year.
“We certainly are in an acceleration mode because we are seeing the confirmation of our expectations when we started our wealth journey in China onshore,” Matos stated.
Under its digital hybrid wealth project Pinnacle, HSBC has engaged about 1,700 wealth managers in China since 2021. According to him, the company plans to increase that number to 1,900 by the end of this year and reach its goal of 3,000 by 2025.
Together with “a significant number of employees” hired from Citigroup (C.N), opens new tab, which sold its mass affluent unit in the nation to HSBC last year, HSBC has also hired 100 private bankers in China, according to Matos.
The bank’s entry into China comes as worries about the future of the second-biggest economy in the world are growing, as Beijing struggles with an unparalleled debt problem affecting local governments and the real estate industry.
Patience Is Key
The wealth and personal banking division of HSBC, which made up 38% of the bank’s earnings the previous year, reported an operational deficit of $90 million in China despite the increase, highlighting the difficult path to break even.
“We are making investments for the future in China. It’s a market where persistence and patience are key. Our personal and wealth banking operations in China are already profitable in many areas, according to Matos.
The business section offers retail banking, asset management, and insurance in China in addition to wealth. In order to grow its wealth business in India even more, HSBC is also counting on a strong Indian economy.
As of last July, when it reopened its India private banking division, it has employed roughly fifty relationship managers and investment counselors, according to Matos.
