(14 June 2023 – New Zealand) HSBC has decided to close its wealth and personal banking business in New Zealand as it exits from less profitable businesses globally to focus on expanding in certain Asian markets.
The London-headquartered lender can “no longer justify investing into this business given the changing operating requirements in the market and scalability of the business”, it said.
HSBC is helping its local customers to switch to other personal and wealth service providers and in the coming months it “remains business as usual” for its customers and staff, a spokesperson for the bank said.
The decision comes after the bank last year said it was reviewing its retail banking business in the market with a view to selling it.
New Zealand is the latest market the bank has decided to withdraw from.
Europe's largest lender is reviewing a possible exit from about one in five of the markets it operates in to sharpen its focus on Asian expansion, Chief Financial Officer Georges Elhedery told Reuters in May.
Its pivot to Asia has already triggered planned sales of its businesses in France, Greece, Russia and Canada.
The bank said it continues to operate and is committed to expanding its wholesale banking business in New Zealand – mostly serving international clients – which includes commercial banking and financial institutions and government, as well as markets and securities services businesses.