HSBC plans wealth hiring spree in CEO's bet on Asia's rich

HSBC plans wealth hiring spree in CEO's bet on Asia's rich

19/09/18, 07:12 am

(Sept 8): HSBC Holdings Plc is planning to increase its wealth-management staff in Asia as Chief Executive Officer John Flint bets on growth in the region.

The bank plans to add more than 1,300 positions, split roughly between retail and private banking, by 2022, according to the heads of the two divisions, which between them currently employ just over 32,000 people in the region. The bulk of the hires, some of which could be internal, will be in Hong Kong and Singapore.

The wealth strategy is part of Flint’s plan to grow HSBC by expanding in Asian markets including Greater China and Southeast Asia. The CEO, promoted in February, said in June that HSBC will pour as much as US$17 billion ($23.3 billion) by 2020 into expanding the region’s business and improving technology. The bank aims to grow revenue from Asia by at least US$1 billion during the same period.

“We have a real opportunity to do more and that’s to further build on Hong Kong and to materially build what we do today in Singapore,” Kevin Martin, the firm’s Asia Pacific head of retail banking and wealth management, said in an interview. “Both businesses need to do it in concert,” he said, referring to the retail and private banking units.

The London-based bank’s plans for wealth management in Asia, which is dominated by global banks such as UBS Group AG, Citigroup Inc. and Credit Suisse Group AG, come as regional firms including DBS Group Holdings and BOC Hong Kong (Holdings) are also expanding amid an unprecedented rise in the region’s assets.

HSBC said Monday that Antonio Simoes, who was head of UK and Europe, will run global private banking from Jan 1. Peter Boyles, who currently runs the group, will retire after 43 years at the company.

Offshore wealth in Asia, excluding Japan, has been growing at about 10 percent a year, according to Boston Consulting Group data, faster than the 5% globally. Offshore wealth from China alone amounted to about US$1 trillion this year, the consulting firm estimated.

Hong Kong’s wealth managers expect to double the money they handle over the next five years to about US$2 trillion, the city’s Private Wealth Management Association said in a recent report published with KPMG China, citing the increasing interest of Chinese nationals looking to diversify their holdings.

“The wealth that the Chinese have already offshore is a massive piece of opportunity for us,” said Tan Siew Meng, Asia Pacific head of global private banking at HSBC.

The expected growth in the industry may exacerbate Hong Kong’s shortage of relationship managers, according to the Private Wealth Management Association’s report. Two-thirds of respondents said a “limited talent pool” was the biggest supply-side constraint.

Martin said the 1,300 staff boost is “not a big scary number” given that his retail bank, including subsidiary Hang Seng Bank, employs about 31,000 people in the Asia Pacific region. Staff within the group may transfer to the wealth business, he said. Hiring will be both internal and external, and include relationship managers, product specialists and advisers, Tan said. Her private bank had 1,100 staff in the region at the end of last year.

Next stop: The interchange of public and private good

SINGAPORE (May 20): Two-minute intervals between trains. Fewer breakdowns. Clean, new buses running at a higher frequency. Bright LED screens displaying details of stops on both buses and trains. To many commuters who are enjoying these benefits, the meltdown of Singapore’s transport system in December 2011, and again in July 2015, is a distant memory. Certainly, services have improved significantly. There are new trains and buses, while existing ones have been spiffed up. There has been an overhaul of the older rail systems, presumably including fixing the grips for the electricity rail ....
Moving from compliance to accountability

While the collection, use and disclosure of data is regulated by the Personal Data Protection Act, b

Failed Innopac deal portends mining magnate Gutnick’s woes in Australia

SINGAPORE (May 20): The Australian Securities and Investments Commission (ASIC) is seeking judicial permission to wind down mining company Merlin Diamonds. The regulator is also probing into whether its chairman Joseph Gutnick failed in his duties. Gutnick, who is known as “Diamond Joe”, is under investigation for a A$13 million ($12.3 million) loan made by Merlin to AXIS Consultants, a private company linked to him. Merlin shares have been suspended from trading since October 2018. ASIC is seeking an order to appoint Deloitte to liquidate Merlin, owner of the Merlin Diamond Mine Pro....