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Tag: HSBC

  • HSBC Posts 24 Percent Profit Drop

    HSBC Posts 24 Percent Profit Drop

    HSBC posted a 24 percent drop in third-quarter profits despite a «resilient» Hong Kong business that managed to offset the city’s technical recession.

    The bank reported profits of $2.97 billion in the three months ended September 30, compared to $3.89 billion in the same period last year. HSBC’s pre-tax profits reached $4.84 billion, down 18 percent and below consensus estimates of $5.29 billion.

    In addition to a 2.9 percent decrease in revenue, primarily driven by lower global market activities, the bank also accounted for a number of provisions and one-off costs including a customer redress provision of $606 million, severance costs totalling $120 million and an expected credit loss provision of $400 million, mainly for unsecured retail lending and higher charges in its U.K. and Hong Kong commercial banking business.

    Despite the global results, the bank reportedly remained «resilient» in Hong Kong despite the headwinds. HSBC’s Hong Kong business registered a 1.3 percent uptick in adjusted pre-tax profits to reach $3.02 billion and push Asia’s pre-tax profits up 4 percent to $4.7 billion.

    Parts of our business, especially Asia, held up well in a challenging environment in the third quarter, said HSBC’s interim CEO, Noel Quinn.

    However, Quinn called performance elsewhere «not acceptable» underlining business activities within continental Europe and the non-ring-fenced bank in the U.K. and the U.S.

    Our previous plans are no longer sufficient to improve performance for these businesses, given the softer outlook for revenue growth. We are, therefore, accelerating plans to remodel them, and move capital into higher growth and return opportunities, he said, adding that the bank would not longer reach its return on tangible equity target of more than 11 percent in 2020.

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  • HSBC advises to avoid a Lehman Crisis in China

    HSBC advises to avoid a Lehman Crisis in China

    More easing is required in the industry not only to improve ease of business, said a senior HSBC executive, but to prevent risks similar to the Lehman crisis.

    Peter Wong, deputy chairman, and Asia Pacific chief executive of HSBC, commented at a Shanghai financial summit on the need to improve corporate governance and investor protection in China in order to manage major systematic risks akin to the trigger of the last global financial crisis. We really don’t want to have another situation similar to the Lehman crisis in China, Wong said, according to a report.

    Whilst it has suggested greater stringency in certain facets, it also lauded regulatory easing, such as the recently relaxed foreign ownership rules, and urged for more similar moves. Wong proposed more easing in the insurance industry, such as ease of expansion into new cities and provinces, and in the banking industry, including the acquiring of deposits.

    It’s very difficult for foreign banks to get deposits in China, Wong said, adding that the country should «figure out a way» to address the issue, he said. We’ve been trying for a number of years. Now we’re developing, we’re increasing our share, but the journey is not easy.

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  • HSBC Ups Employee Childcare Benefits in India

    HSBC Ups Employee Childcare Benefits in India

    HSBC’s India arm has upgraded its female employee benefits, allowing reimbursement for daycare costs for their children up to the age of six.

    This marks an increase in the maximum age of a child from the previous two years old. For those seeking daycare reimbursement, each child is entitled per month to Rs 18,000 ($250) in Mumbai; $190 in National Capital Region, Bengaluru and Pune; and $141 in other cities.

    Mothers that do not wish for daycare reimbursement can receive a fixed $141 per month and HSBC claims to be the sole provider of such benefits.

    «With this policy, we have gone a step further to empower our women employees so that they can balance work life and motherhood better,» said Vikram Tandon, head human resources, HSBC India. This policy provides our working mothers the flexibility to choose the best from multiple childcare options for an extended time period.

  • Singapore’s Multi-Currency War Heats Up With Revolut Launch

    Singapore’s Multi-Currency War Heats Up With Revolut Launch

    After amassing more than 8 million customers, the tech unicorn has landed in Singapore, its second market outside Europe.

    After much anticipation, U.K. challenger bank Revolut has rolled out its services in Singapore. Customers can now open an account from their mobile phones and start spending worldwide in over 150 currencies at the real exchange rate without hidden fees.

    The digital-only bank had already been beta-testing its services over the past year and amassed 30,000 customers on its waiting list when it launched in the city-state on Wednesday.

    Revolut’s introduction promises to heat up the already competitive multi-currency war, which includes competitors YouTrip and in the near future, InstaReM and TransferWise.

    Revolut account holders get a multi-currency travel debit card and an account that supports the Singapore dollar and 13 other currencies, with another 14 more including, Indian rupees, Malaysian ringgit and Philippine pesos, to be added in the coming months, a press release said.

    Customers also get free worldwide ATM withdrawals, peer-to-peer money transfers, and foreign exchange, and its app integrates budgeting and savings management functionalities. Accounts are free, but the Premium account ($9.99 per month) and Metal account ($19.99) offer additional features and limits.

    At its launch event on Wednesday, the firm said it is working on bringing features that are already available in other markets, like cryptocurrency trading and commission-free stock market trading, to customers in Singapore.

    Revolut was founded by former Credit Suisse trader Nik Storonsky and former Deutsche Bank systems engineer Vlad Yatsenko in London in 2015 as a digital alternative to traditional banks. It has raised more than $336 million in funding from venture capital firms, and is valued at $1.7 billion.

    The firm opened its Asia-Pacific hub in Singapore office in 2018, where it employs 20 people. It plans to triple its headcount in the coming months.

    It plans to launch in the U.S. and Canada later this year.

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  • HSBC Setting Up Malaysian Asset Management Arm?

    HSBC Setting Up Malaysian Asset Management Arm?

    HSBC is reportedly setting up an asset management business in Malaysia in the midst of a major job-axing exercise.

    It is in the midst of setting up its team, looking to hire a CEO, CIO, and so on, according to a report from Malaysian media , citing an anonymous source.

    The process is such that you need to have a basic set-up and concurrently apply for a license from the Securities Commission Malaysia. A Malaysia-based spokesperson for HSBC declined to comment, according to the report.

    Assets under management (AUM) in Malaysia’s asset management market posted single-digit growth in four out of the last five years, according to a report by Nomura Institute of Capital Markets Research, with a contraction in 2018. This is a stark contrast with the 23.5 percent CAGR (compound annual growth rate) from 1999 to 2007. As of 2018-end, the industry’s AUM totaled around 744 billion Malaysian ringgits ($178 billion).

    Concurrently, Bank of Singapore agreed to acquire local asset manager Pacific Mutual Fund for $8.5 million in June, pending regulatory approval. Synergies from the acquisition are expected to result in more than just expanded distribution.

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  • HSBC Appoints New Head of Global Liquidity and Cash Management

    HSBC Appoints New Head of Global Liquidity and Cash Management

    HSBC Singapore on Friday announced a new Head of Global Liquidity and Cash Management who will lead the business in Singapore working with customer groups to maximize its potential as a regional treasury hub as they deepen their presence in Southeast Asia.

    David Koh, HSBC’s new head of global liquidy and cash management (GLCM), joins from Standard Chartered, where he most recently led the transaction bank for Greater China and North Asia. He brings over 25 years of experience in transaction banking, having worked across seven geographies including China, Singapore, the UK, and Saudi Arabia, the lender said in a statement.

    Whilst Singapore already enjoys a strong concentration of multinationals basing their regional treasury centers here, Southeast Asia’s rising consumer market means these numbers are ratcheting up even further. When you couple this with the region’s growing digital economy and mobile-first mentality, it becomes clear that businesses require truly innovative solutions to grasp these opportunities,» said Head of Commercial Banking HSBC Singapore Alan Turner.

    With David’s many years of international experience, he will be instrumental in driving cross-border payment and liquidity solutions in this ever-changing dynamic region, Turner added.

    Prior to Standard Chartered, Koh headed the Corporate and Transaction Banking teams for Deutsche Bank in Greater China. Koh began his career at HSBC on the bank’s executive trainee development program.

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  • HSBC Plans Yet Another Round of Job Cuts

    HSBC Plans Yet Another Round of Job Cuts

    Up to 10,000 jobs across HSBC are under threat as interim chief executive officer Noel Quinn plans to cuts costs.

    British multinational bank HSBC is set to embark on its largest cost-cutting exercise in years, and facing the ax are up to 10,000 high-paying roles across the group, citing two people close to the matter.

    The latest round oaf job cuts follows the August announcement that the lender would be laying off up to 2 percent of its global workforce (4,754 of 237,865 jobs at that time) as part of the overall group strategy to cut 4 percent of the bank’s wage costs.

    One of the sources said the cost-cutting drive and job cuts could be announced as soon as later this month, when the group announces its third-quarter results.

    Asia a Bright Spot

    There’s some very hard modelling going on. We are asking why we have so many people in Europe when we’ve got double-digit returns in parts of Asia,» a source was quoted as saying.

    The bank will also continue to hire staff in high-growth regions Asia, where the bank generates 80 percent of its profits, another person said.

  • Despite Heavyweight Exits HSBC Sticks With Hiring Plan

    Despite Heavyweight Exits HSBC Sticks With Hiring Plan

    HSBC Holdings said it is sticking with hiring plans for its wealth business in Asia following the surprise exit of two senior executives who pushed for the strategy.

    The London-based bank with a strong franchise in Asia wants to hire more than 600 staffers by the end of 2022 for the business in the Asia-Pacific region, said Kevin Martin, regional head of retail banking and wealth management who was quoted in Bloomberg. On Monday, it announced three key appointments.

    A year ago, the lender said it would add more than 1,300 positions in retail and private banking in Asia by 2022. «We continue to double down on Asia, pivot to Asia, grow Asia wealth. That’s exactly what we’re doing. Nothing’s changed,» said Martin, who was quoted in «Bloomberg». More than 300 are likely to be hired through this year within his division, which includes HSBC’s Jade service that targets customers with account balances of more than $1 million, he added.

    Despite the ambitious targets, a slower Hong Kong economy and the Huawei issue has rocked the lender recently. Aside from the departures of CEO John Flint and Greater China head Helen Wong last month, HSBC said last month it is cutting more than 4,000 posts, with a focus on senior executives. The group employed about 238,000 people as of June, according to its interim report.

    The lender opened an outlet in Shanghai last month for its new Jade wealth program. It plans to open one in Beijing as well, and a few more in Hong Kong next year, Martin said. The focus of the hiring will be in Hong Kong, Singapore, and China.

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  • HSBC Announces Key Senior Appointments

    HSBC Announces Key Senior Appointments

    HSBC Private Banking has announced the expanded role of Cynthia Lee, appointed as Regional Head of Private Wealth Solutions (PWS), Asia Pacific, and the appointment of Steven Weekes as Head of Private Wealth Solutions (PWS), South East Asia.

    Cynthia Lee  is the new Regional Head of Private Wealth Solutions, Asia Pacific at HSBC Private Bank. In order to build on Private Wealth Solutions’ comprehensive regional support for a growing number of HSBC Group-connected clients, Cynthia Lee takes on an expanded role to cover Asia Pacific. The change means PWS’ structure will mirror that of Private Banking, the largest contributor of referrals for the business. Cynthia will continue to report to Alan Beattie, Global Head of Private Wealth Solutions.

    As we look to strengthen our position in Asia, a region where we continue to see an immense opportunity, Cynthia and Steven’s wealth of experience and deep expertise will help us bring the best of PWS to our Asian clients,” said Alan Beattie, Global Head of Private Wealth Solutions. Cynthia has over 20 years of wealth advisory experience, focusing on private clients and families. She joined HSBC as Head of PWS, North Asia, in January 2019. She was formerly at JP Morgan where she was most recently Head of Wealth Advisory for Asia.

    Steven Weekes has joined HSBC as head of private wealth solutions, South East Asia from Citi Private Bank, where he worked for 23 years. Most recently, Steven was Head of International Fiduciary Services based in Zurich, Switzerland, leading a global team of professionals with responsibility for International Trust companies in the Bahamas, the Cayman Islands, Jersey, Singapore and Switzerland.

    Prior to this, Steven was the Regional Trust Head for Asia, responsible for the delivery of wealth planning to Private Banking clients in Asia with a strong focus on Next Gen and Wealth Transfer Planning. Steven has also held other Trust, Private Banking and business advisory roles at Citi and KPMG in Switzerland and Australia.

    Weekes will be based in Singapore, reporting to Cynthia Lee, Regional head of Private Wealth Solutions, Asia Pacific. He takes over from Michelle Lau, who has been appointed to a new role within HSBC Private Banking as Managing Director, Ultra High Net Worth and Family Office Strategic Services, South East Asia. In her new position, Michelle will drive further development in South East Asia of HSBC Private Banking’s UHNW proposition, services for Family Offices, and global connectivity.

    HSBC is aiming to significantly expand its Asian Private Banking business over the next five years, including Private Wealth Solutions, with a key focus on Greater China and the ASEAN region.

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  • HSBC Hires Former Deutsche Bank Southeast Asia Vice Chairman

    HSBC Hires Former Deutsche Bank Southeast Asia Vice Chairman

    HSBC continues to bolster its Southeast Asia business with the latest hire of a former Deutsche Bank vice chairman for the region to become its own Southeast Asia vice chairman of global banking.

    Philip Lee joins the bank as the new Singapore-based role reporting at the function level to Greg Guyett, group head of global banking, and at the country level to Tony Cripps, CEO, HSBC Singapore, according to a statement from the bank. Lee is also expected to work closely with Stephen Williams, head of global banking for Southeast Asia.

    Prior to HSBC and Deutsche Bank, where he worked for five years, Lee spent 18 years with J.P. Morgan as its Southeast Asia investment banking CEO and senior Singapore country officer. Currently, he is also chairman of the Singapore Health Promotion Board and Council Member and Investment Committee Chairman of the Institute of Banking and Finance Singapore (IBF).

    HSBC’s inroads into Southeast Asia continue to gain momentum as part of its three-year strategic plan with a series of hires in the past year. In addition to Lee, the bank has appointed Kanakanjan Ray as Southeast Asia head of financial institutions group and Mun Loong Choy as Southeast Asia head of multinationals.

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  • HSBC Life Singapore Makes Senior Appointments

    HSBC Life Singapore Makes Senior Appointments

    The bank has announced three senior appointments to support the growth of its insurance business, as it ramps up its manufacturing and distribution activities in Singapore.

    HSBC is boosting management oversight on key units of its insurance business in Singapore with the appointment of Lee Kah Jing as chief product officer, Gajan Yogaranandan as chief risk officer, and Kapil Arora as chief financial officer, the bank said in a statement on Wednesday.

    To meaningfully grow our business to scale, there’s a need for us to fire up all cylinders. This means having the support of a strong leadership team to drive key pillars of our business, be it at the product development and management aspect or oversight of key business risks and our financials, is critical, Carlos Vazquez, CEO, HSBC Life Singapore said in the statement.

    Lee, whose appointment was effective on 1 July, joins from  Sun Life Financial Indonesia, where he was head of Product Actuarial. He brings more than 10 years of life insurance experience across key areas including analytics, enterprise risk management, product development, and actuarial pricing.

    Arora, who joined HSBC Group in 2007, brings more than 15 years in the field of finance and accounts. He was most recently head of Financial Control at HSBC Insurance (Hong Kong). His appointment is effective on 19 August.

    Yogaranandan, also with more than 15 years of sector experience, joined HSBC Group in 2011, and was most recently a manager of Global Market and Credit Risk. He was previously the lead Market and Credit Risk Manager for HSBC’s Europe insurance business. His appointment is effective on 26 August.

    HSBC rebranded its Singapore life insurance business to HSBC Life Singapore and widened its distribution channel to include independent Financial Advisory (FA) firms, in a bid to capture a slice of Asia-Pacific’s booming insurance market as a result of an ageing and wealthier domestic population, and a rise in international citizens seeking more sophisticated wealth and insurance solutions.

    It has since ramped up its offering with new products and expanded distribution arrangements. HSBC Life said that it has grown its overall headcount by 25 percent in the past year.

  • HSBC Launches Digital Credit Card in Mainland China

    HSBC Launches Digital Credit Card in Mainland China

    HSBC continues to expand its capabilities in mainland China with the latest launch of a digital credit card – the first foreign bank to do so.

    The card will allow HSBC customers to access credit card information via the HSBC Mobile App or WeChat Banking service in addition to the same privileges and benefits as the plastic card.

    The bank also leveraged facial recognition technology to allow easy activation of credit cards or unlocking of details. Mainstream online payment tools, such as Alipay, WeChat Pay and UnionPay, can also be added through the credit card.

    We have invested in data analytics capabilities and AI-powered risk control systems to provide a digital credit card solution that caters to the spending needs of customers looking for ease, convenience, value and security, said Richard Li, EVP and head of retail banking and wealth management for HSBC in China.

    HSBC continues to build momentum in mainland China, having also crossed the one million credit card issuance mark since it first began in late 2016. It had also recently launched its first onshore high net worth client center focusing on clients with a minimum account size of $1 million.

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  • HSBC Offers Fee Cuts, Rebates to Support Hong Kong SMEs

    HSBC Offers Fee Cuts, Rebates to Support Hong Kong SMEs

    HSBC has announced a range of measures intended to help struggling businesses cope with challenges from the China-U.S. trade war and the anti-government protests in Hong Kong.

    As the Hong Kong economy is facing its worst crisis in a decade, HSBC has become the first bank to take action to help its small and medium enterprise customers by offering fee cuts and rebates.

    The bank and its subsidiary Hang Seng Bank are offering an interest rebate of up to HK$20,000 ($2,550) to SMEs that take out loans under SME Financing Guarantee Scheme and the SME Loan Guarantee Scheme for repayments made between March and August.

    At the same time, the bank is extending until June 30, 2022 its subsidy of up to HK$50,000 that is given to SMEs to pay for the fee for the government to back the loan. From September 2 until the end of the year, merchants will also enjoy lower fees for B2B transfers using HSBC’s PayMe platform as the bank has revised its fee to 0.75 percent, down from 1.5 percent.

    Protests Affecting Business

    Months of anti-government protests across Hong Kong have disrupted business and traffic, and caused a drop in tourist numbers to the special administrative territory and paralyzed shopping areas.

    According to HSBC, SMEs account for over 98 percent of local enterprises and around 45 percent of total employment. We have spent time listening to our customers and have heard their voices at this difficult time, Terence Chiu, the bank’s head of commercial banking for Hong Kong, was quoted by “SCMP” as saying.

    Countries including Singapore and the U.S. have issued advisories to defer non-essential travel to Hong Kong.

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  • HSBC Considering Purchase of Aviva’s Asia Business

    HSBC Considering Purchase of Aviva’s Asia Business

    HSBC Holdings is considering a bid for Aviva’s Asian operations, as it looks for ways to diversify its business in the region.

    London-based HSBC is in the early stages of weighing an offer for at least part of Aviva’s Asian business. A deal would help HSBC bolster its insurance presence in Singapore and other parts of Southeast Asia, Bloomberg reported, quoting people familiar with the matter.  There’s no certainty the deliberations will result in a transaction, the people added.

    Hong Kong, where HSBC generates more than half of its pretax profit, has been roiled in recent protests, leaving shareholders and staff concerned about the lender’s growth prospects. Its tense relations with Beijing over the Huawei incident has fuelled other sets of concerns.

    Aviva, the UK insurance conglomerate has announced its intention to put up its Asian business for sale, as part of new chief executive’s Maurice Tulloch turnaround strategy for the firm. The company’s operations in the region could be valued at about $3 billion to $4 billion.

    Other suitors are also considering bids for the Aviva assets, the people told Bloomberg. Representatives for HSBC and Aviva declined to comment.

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  • HSBC Slighted in China

    HSBC Slighted in China

    In a tell-tale sign that HSBC’s relations with Beijing are on the edges, the bank has been noticeably excluded from a list of 18 involved in China’s interest rate reform.

    Hong Kong’s biggest bank was not included in a list of 18 lenders that will participate in pricing for a new loan prime rate that will be unveiled by the People’s Bank of China on Tuesday. The roster includes foreign lenders such as Standard Chartered and Citigroup, which have smaller China presence than HSBC.

    The People’s Bank of China (PBOC) said in a statement  that the benchmark lending rates set by the bank will be replaced with new national Loan Prime Rates (LPRs) — which will be based on the interest rates that a basket of 18 commercial banks charge their more creditworthy borrowers — as a new reference point for lending.

    The exclusion deals a blow to HSBC, which has made Greater China a key pillar for its growth strategy. The lender is the third-largest corporate bank in the country by market penetration, according to data provider Greenwich Associates LLC.

    The recent departures of chief executive officer John Flint and the bank’s Greater China head, Helen Wong signal troubles at the bank. HSBC’s shares fell 13 percent in Hong Kong year-to-date, compared with a decline of less than 1 percent in the benchmark Hang Seng Index.

    Speculations about how the London-based bank has fallen into China’s bad books include the bank’s involvement with Huawei Technologies. According to a Financial Times report on Monday, Liu Xiaoming, China’s ambassador to the UK, summoned HSBC’s ex-CEO John Flint to the embassy earlier this year to interrogate him over the bank’s role in the arrest and prosecution of Meng Wanzhou, the chief financial officer of Huawei.

    The then-CEO told him HSBC had no option but to turn over information that helped US prosecutors build a case against Meng, the FT said.

    Wong’s departure came at a time when HSBC was facing criticism in China’s state-owned media over its role in the Huawei case. The way HSBC helped the U.S. Department of Justice acquire documents concerning Huawei was unethical, citing a source close to the matter. Hence, the bank was likely to be included in China’s first “unreliable entity” list of companies that have jeopardized the interests of Chinese firms, it said.

    An HSBC spokesman on 9 August has denied that Wong’s departure was linked to any issue involving Huawei, pointing out that she announced her resignation before Flint’s departure.

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