HSBC on track to hire 1,000 wealth managers in Asia before year end
HSBC is on track to hire 1,000 frontline roles across its Asian wealth management business by the end of 2021, South China Morning Post reports.
In February, the UK high street bank announced its plan to pump $6 billion into the region over the next five years.
More than half of this planned investment, some $3.5 billion, is going directly to the bank’s Asian wealth management operations. In total, the bank intends to hire 5,000 people across the division by 2025.
“Our $3.5 billion investments are under way, enabling us to deliver a robust start in Asia this year,” says Greg Hingston, HSBC’s regional head of wealth and personal banking business, as reported by SCMP.
“We are seeing increased trading and investment activity from new and experienced investors on mobile and, with our relationship managers and wealth specialists, for more sophisticated needs.”
Asia is where the money is
HSBC already makes the bulk of its revenue from the Asia-Pacific region. In 2020, the bank’s Asian business reported $12.8 billion in profits.
Whilst it logged a contrasting $4.2 billion loss in Europe, where it is also in the process of paying more than €1 billion to get rid of loss-making French branches.
In the first quarter of 2021, Asia accounted for two-thirds of HSBC’s adjusted profit before tax across its wealth and personal banking business, or $1.2 billion, according to Hingston.
Revenue brought in by this Asian operation also rose 57% in the same quarter, with wealth balances in the region increasing by 18%.
Net new money flowing into HSBC’s Asian private banking business also rose by 89% to $6.6 billion between January and March 2021.
It’s a market worth investing in. As SCMP cites, a Hurun Report published in March shows Asia had more dollar billionaires in 2020 than the rest of the world combined.
This year, the bank has already set up a new onshore private banking business in Thailand. As well as launching a dedicated independent asset managers’ desk in Singapore.
Other banks follow suit
HSBC isn’t the only bank going on a hiring spree in this region, where affluent and mass-affluent segments are expected to account for 50-60% of onshore incremental revenue pools by 2025, according to 2020 McKinsey analysis.
Standard Chartered announced in March it intends to increase its headcount in the mainland Chinese cities from 1,400 to 2,500 by 2023.
Whilst Citigroup said the same month it plans to hire up to 1,700 people across its businesses in Hong Kong.