HSBC gains assets from former Credit Suisse clients in Asia

HSBC Holdings said it is picking up clients and staff from Credit Suisse Group following the Swiss bank’s hastily arranged takeover by rival UBS Group.

The UK bank attracted US$22 billion globally in net new money in the first quarter, with almost two-thirds of that coming from Asia, Nuno Matos, global head of wealth and personal banking, said in an interview. Credit Suisse clients contributed to some of the asset growth, he said, without providing details.

“We obviously attracted flows from Credit Suisse,” Matos said on Tuesday (May 9) on the sidelines of the Bloomberg Wealth Asia Summit in Hong Kong. “But by no means that was the major driver of our growth.”

As HSBC expands its wealth management business – a linchpin for its pivot to Asia – the lender has been on a recruitment drive, adding talent from Credit Suisse and others. Competition is fierce, however, with DBS Group Holdings among banks expanding in a region where wealth generation is set to outpace the rest of the world over the next five years. Rich clients have also stayed on the sidelines as the markets remained volatile, reducing transaction fees for banks.

“We attract individuals from many competitors and obviously from Credit Suisse, but we are not targeting specifically any competitors for hiring,” Matos said, adding that he is undaunted by the combination of UBS and Credit Suisse which will create a Swiss wealth giant.

HSBC has been under pressure to improve returns, with its top shareholder Ping An Insurance Group criticising the bank’s current model in Asia as being “inefficient”. The Chinese insurer, which is pushing for a separate listing of HSBC’s Asian arm, has also called out the lack of regional experience among senior HSBC executives.

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Matos, who is from Portugal, is among several global executives who have relocated to Hong Kong in recent years as HSBC pivoted to the region. His previous roles included chief executive officer of Europe as well as head of retail banking and wealth management for Latin America. The former Banco Santander executive joined HSBC in 2015.

Net operating income for HSBC’s wealth and personal banking division – which Matos heads – jumped 82 per cent in the first quarter from a year ago, boosted by a rise in customer activity following the reopening of the China border.

Common prosperity

Even as Beijing has targeted China’s billionaires in its common prosperity push, HSBC has been expanding onshore, opening up offices and hiring wealth planners. The lender has been boosting its presence in the world’s second-largest economy even as geopolitical tensions rise between the US and China.

HSBC expects to see strong growth in China as President Xi Jinping’s common prosperity drive helps boost wealth generation.

“It’s a value that we all share in all parts of the world,” Matos said. “One condition for proper wealth development is sustainable economic growth and prosperity.”

The UK bank is also seeing strong gains in Hong Kong, echoing a view from Boston Consulting Group that the city will overtake Switzerland as the world’s largest offshore hub by 2026. Money flows are returning to Hong Kong after the post-pandemic opening in March, and China continues to be the biggest wealth driver in the region, he said.

Hong Kong has a “very strong legal framework” that makes it a preferred wealth hub in Asia, said Matos. Singapore is the other preferred venue for mainlanders, he said. BLOOMBERG