HSBC bullish on expanding PHL wealth, premier banking business

HSBC Philippines is optimistic about growing its wealth and premier banking business’ market share amid the country’s growing middle class and strong macroeconomic fundamentals.

“I think from HSBC Philippines, we believe in the overall potential within the Philippines as a market and especially for wealth and premium banking,” HSBC Head of International Wealth and Premier Banking (IWPB) for the Philippines Pramoth Rajendran said at a briefing on Tuesday.

“The number of adults who are probably holding assets and wealth greater than $250,000 is expected to double by 2030,” he said.

Mr. Rajendran said they want to ramp up their client base for their IWPB business.

“We are looking to grow in market share. I think what we can say is that we target a very specific market. It’s not the mass market, it’s the affluent market.”

Their current portfolio has a “healthy mix” of individual and family joint premier customers, he added.

The bank’s bullish outlook is supported by expectations that the Philippines is well-positioned to become an upper middle-income economy, Mr. Rajendran said.

“As a result of the growing middle class, you see the affluent and wealth growth across the spectrum,” he said.

HSBC also expects the Philippines to remain as one of the faster-growing economies in Asia, the official said. “What makes the Philippines also an added advantage is it’s one of those countries where the economy is largely a consumption-driven economy.”

“In terms of lending, we see this is one of the markets where we see demand outstrips supply,” he added.

“From a demand perspective, I continue to see the same demand as what we’ve seen. From a consumer trends perspective, and given your consumption-driven economy, the expectation is the consumer demand for credit will continue. In the medium-term to short-term, I haven’t seen any indicators that perhaps indicate otherwise.”

Mr. Rajendran added that the bank seeks to serve both the onshore and offshore needs of their premium customers. Customers can be served through their wealth brokerage for onshore needs. For offshore, the bank also has wealth hubs in Singapore and Hong Kong.

“The HSBC Premier proposition is tailored for working professionals, families, Filipino investors, and people with international needs, and also in terms of wealth aspirations,” he said.

The bank has also rolled out around 20 different investment products for its Premier customers over the last year.

“As part of Premier, we have a unique Premier credit card, which is an add-on, fee-free card which allows you to enjoy the facilities such as dining, travel, entertainment, and so on,” Mr. Rajendran said.

HSBC also has special offers this year for new HSBC Premier customers that would allow them to obtain up to one million Mabuhay Miles from Philippine Airlines, among other features. — Luisa Maria Jacinta C. Jocson