HSBC doubling down on South-east Asia, targeting double digit growth

HSBC Holdings, Europe’s largest lender by assets, is targeting double-digit growth in South-east asia, says Amanda Murphy, the bank’s head of commercial banking for South and South-east Asia.

The London-based bank, which is facing calls by its largest shareholder Ping An Insurance Group Co to carve out its Asia business, is placing greater emphasis on the region as it aims for growth beyond its traditional markets of China and Hong Kong.

“South and South-east Asia commercial banking posted strong double-digit growth in the first half of 2022, across all segments – by revenues, profits, in our trade business, payments and in sustainable finance,” she said. “We are seeing good growth in every country in this region.”

HSBC’s global commercial banking division saw a 14 per cent year-on-year revenue growth in the first half of 2022, and accounts for a third of HSBC’s total profits. In 2021, Asia contributed US$12.2 billion of the group’s pre-tax profit of US$18.9 billion. 

New business segments the bank is targeting include small and medium-sized enterprises, technology and new plant-based foods. For instance, the bank provided financing to Singapore-headquartered plant-based food start-up Next Gen Foods.

HSBC has launched tech funds for Singapore and South-east Asia, as well as for India, targeting high-growth businesses. It is now looking at launching a tech fund in Australia too, Murphy added.