Banking

HSBC reviews retail banking outside UK and Hong Kong, FT reports

 HSBC is reviewing its retail banking operations outside the UK and Hong Kong, which could see it substantially scale back operations in other countries, including Mexico, the Financial Times reported on Thursday, citing people familiar with the discussions.

The bank is looking outside its core markets to reduce consumer presence and focus on wealthier “premier” customers, the report said.

When the bank relaunched its “premier” wealth banking brand in Britain last month in pursuit of wealthy clients, HSBC UK’s head of wealth and personal banking, Jose Carvalho, told Reuters the move plays into the bank’s broader strategy.

Last week, the London-headquartered bank announced a raft of senior management departures and appointments as its new CEO Georges Elhedery aims to streamline costs and improve decision-making.

Elhedery, who took the helm in September, is keen to focus on clients in the bank’s “premier” category as well as in wealth management, FT said.

HSBC may look at significantly cutting its retail presence in Mexico, while reviewing its positions in countries such as Malaysia and Indonesia, where it could benefit from focusing on premier banking, according to FT.

HSBC declined to comment.

Source : Reuters

GLOBAL BUSINESS AND FINANCE MAGAZINE

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