PIAIF - HSBC to wind down New Zealand wealth personal banking operations

2023-06-13 10:49:59 ET

HSBC ( NYSE: HSBC ) will wind down its wealth and personal banking business in New Zealand, as it focuses on its more profitable businesses in certain Asian markets.

Meanwhile, the company said it will continue to operate and expand its wholesale banking business in New Zealand, which mostly serves international clients. That unit provides commercial banking, services for institutional clients, and markets and securities services.

The process to exit wealth and personal banking in New Zealan will occur in phases over several years, the company said.

The London-headquartered bank, which is heavily focused in Asian markets, can no longer justify investing in the New Zealand wealth and personal banking businesses "given the changing operating requirements in the market and scalability of the business," the company said, according to media reports .

In May, HSBC ( HSBC ) said it was reviewing a plan to pull out of as many as a dozen countries to focus on growth in Asia, which already accounts for a majority of the bank's profits.

The lender has been under pressure from shareholder Ping An Insurance ( OTCPK:PNGAY ) ( OTCPK:PIAIF ) to cut costs and to shift more of its attention to Asia.

More on HSBC strategic moves:

• HSBC says French retail bank sale may fall through
• HSBC chair makes case for rejecting proposals on Asia spinoff, dividend
• HSBC to close 114 branches in the U.K.

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