HSBC ends wealth management services
Global strategy also concerns Jordan and Bahrain
After reviewing its MENA business, HSBC Holdings decided to discontinue sales of Wealth Investment or Wealth Insurance products in Lebanon, Jordan, and Bahrain starting October 7.
“The bank will mainly stop products such as mutual funds, structure deposits, and bonds, as well as insurance products,” according to sources from HSBC Bank Middle East in Dubai.
This measure is in line with the bank’s global strategy to end small or insufficiently profitable operations. “HSBC’s global strategy for retail banking and wealth management is to offer and grow the wealth business in markets where we can achieve scale,” the bank said in a statement.
The growing number of wealth management and private banking firms servicing the region has created tough competition and led to lower fees.
Existing wealth management customers will continue to receive basic services and their wealth investments will be maintained until maturity. “Premier customers remain a strategic priority and Premier Relationship Managers will remain a key part of our business [in these countries], providing Premier services and non-wealth saving, borrowing and international banking solutions to our existing Premier customers,” the statement said.
The bank’s decision won’t lead to any job losses in any of the three concerned markets.
Date Posted: Sep 04, 2013