HSBC Hires Wealth Teams Across Asia
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HSBC has announced the launch of a new global business, combining retail banking and wealth management and global private banking. Recruitment for wealth teams across Hong Kong, Singapore and mainland China is on track.
HSBC’s new unit will become one of the world’s largest global wealth managers with $.4 trillion in assets, with nearly half of the assets from Asia, according to a media release on Monday. Wealth and personal banking will cover the entire spectrum of private wealth, from retail clients to ultra-high net worth (UHNW) individuals.
Across Asia, where wealth pools are growing faster than in any other region, HSBC’s wealth revenues grew 12 percent in 2019 (year on year) to $.7 billion.
This move creates one of the world’s largest and fastest-growing wealth franchises, centered in Asia and serving clients around the world. HSBC’s wealth propositions are compelling, increasingly digital and support individuals no matter where they are in their wealth journey, from first-time investors – to clients considering generational planning needs, Charlie Nunn, CEO of Wealth and Personal Banking, HSBC, said.
In 2019, HSBC grew affluent and emerging high net worth clients globally in Premier1 and Jade, respectively, by 7 percent and 14 percent year on year. Over half of Jade’s total clients globally are in Asia. Global private banking, where profit before tax grew by 19 percent, attracted a record $23 billion of net new money in 2019, two-thirds of which were in Asia. 2019 also saw an increase in Asia client assets of 22 percent to $51 billion.
Recruitment for wealth teams across Hong Kong, Singapore, and mainland China is on track. Since 2017, both businesses have recruited 800 people, including private bank relationship managers, investment counselors, UHNW solution specialists, and product specialists, and Jade directors and relationship managers, investment and insurance specialists.
In 2019, four Jade Centres were opened across Singapore, Hong Kong, and Shanghai. This year, HSBC has recently opened two more Jade Centres in Hong Kong and plans to open one in Beijing.
Questions & Answers
Q.What is the primary focus of HSBC’s new combined business unit?
What is the primary focus of HSBC’s new combined business unit?
The new unit combines retail banking, wealth management, and global private banking, becoming one of the world's largest wealth managers. It aims to cover the entire spectrum of private wealth, from retail clients to ultra-high net worth individuals, with a strong focus on Asia.
Q.How much of HSBC’s wealth assets are based in Asia, according to the article?
How much of HSBC’s wealth assets are based in Asia, according to the article?
Nearly half of HSBC’s new unit's total assets of $1.4 trillion are from Asia. The region is experiencing faster wealth growth than anywhere else, leading to significant revenue increases for HSBC's wealth services.
Q.What recruitment efforts has HSBC made for this new wealth strategy?
What recruitment efforts has HSBC made for this new wealth strategy?
HSBC has recruited 800 people since 2017, including private bank relationship managers, investment counsellors, and Jade directors. Recruitment for wealth teams is currently on track across Hong Kong, Singapore, and mainland China to support this expansion.
Q.What was the growth in profit before tax for global private banking in 2019?
What was the growth in profit before tax for global private banking in 2019?
Global private banking saw its profit before tax grow by 19 percent in 2019. This sector also attracted a record $23 billion of net new money, with two-thirds of this amount originating from Asia.