British multinational investment bank and financial services holding company HSBC anticipates double-digit asset growth in its newly combined wealth business in the Asia Pacific by 2023.
The company published the merger of its global private banking and retail wealth businesses to create new wealth and personal banking unit as part of a radical strategy overhaul.
The consolidated wealth business, which came into effect on May 1, controls assets worth about $1.3 trillion globally, with nearly half of that in Asia, where the bulk of it is accounted for by its fast-growing mass wealthy customer base.
Aiming to become the top wealth manager in the Asia Pacific in the medium-to-long-term, HSBC intends to intensify its focus on clients with investable assets of over $1 million, said Greg Hingston, regional head of wealth and personal banking business who took over the new role on April 1.
“With the combination, there is a big, big focus on family offices going forward. And it all fits within that focus around increasing penetration into the high and ultra-high net worth segments.”
– Greg Hingston,
Regional Head – Wealth & Personal Banking
Historical data for the consolidated wealth business is yet to be published. The bank’s global retail wealth assets in the first quarter rose by 6% from a year ago to $480 billion, while private banking client assets declined 2% to $329 billion.
Even as the coronavirus pandemic has interrupted normal trade and banking services, Mr. Hingston said HSBC had seen improved usage of digital technologies by its wealth management clients.