HSBC targets wealthy expats, bullish Asian firms to drive Europe unit,

By Jerry  Published On April 8, 2024
LONDON, April 8 (Reuters) – HSBC’s (HSBA.L), opens new tab European chief is betting on rising regional wealth and overseas expansion by Asian corporate clients to boost his unit’s contribution to group profit after a multi-year reboot turned the business from laggard to profit engine.
The turnaround in Europe, some details of which are reported here for the first time, has helped HSBC overcome investor scepticism about its “network strategy” after a 2022 campaign by number one shareholder Ping An Insurance Group of China (601318.SS), opens new tab raised questions over whether HSBC’s fast-growing Asian business was being held back by its outsized presence in slower-growth Western markets.
At the core of the strategy is the notion that big corporate clients in Asia, many of which already borrow from HSBC, will use a wider range of its services in Europe as they expand into the region, as well as tapping it for advice on local deals and fundraising.
Beside profiting from Europe-bound revenue from other HSBC hubs, the bank wants to increase income from ultra-high-net-worth families, Colin Bell, chief executive of HSBC Europe, told Reuters in his first interview since taking over the role in February 2021.
Source: REUTER

Leave A Reply

Your email address will not be published. Required fields are marked *

*