HSBC Reports Profit of $8.4 Billion in 2021 1H, Global Wealth AUM at $1.7 Trillion and Asia at $810 Billion
6th August 2021 | Hong Kong
HSBC, one of the world’s largest banking group with more than $2.97 trillion assets, has reported profit-after-tax of $8.4 billion in the 1st half of 2021, increasing profit by $5.3 billion from $3.1 billion in 2020 1H. HSBC 2021 1H revenue is $25.6 billion, with $11.4 billion revenue (44.5%) coming from HSBC Wealth & Personal Banking business (Wealth Mgmt, Private Banking, Personal Banking, Insurance and Asset Mgmt). HSBC also reported total global wealth AUM at $1.7 trillion with $810 billion from HSBC Asia. In 2021 1H, HSBC Asia has hired 600 wealth front-line employees, with HSBC’s Asia affluent and high net worth (HNW) client base growing 7% in the last 1 year to 1.7 million customers. HSBC is investing $3.5 billion and hiring 5,000 wealth management roles to be the leading wealth manager in the region by 2025. (AUM ~ Assets under Management)
” HSBC Reports Profit of $8.4 Billion in 2021 1H, Global Wealth AUM at $1.7 Trillion and Asia at $810 Billion “
HSBC Wealth and Personal Banking, Global AUM at $1.7 Trillion, Asia at $810 Billion
2021 1H HSBC Wealth Revenue:
- Investment:$4.8 billion
- Life Insurance: $1.8 billion
- Global Private Banking: $935 million
- Asset Management: $597 million
- Personal Banking: $6.1 billion
- Others: $435 million
- Total Revenue: $11.4 billion
- Profit before Tax: $3.8 billion
HSBC AUM:
- Total Wealth AUM: $1.7 trillion
- Asia Wealth AUM: $810 billion
Noel Quinn, HSBC Group Chief Executive:
“We expanded our Wealth franchise, with a particular focus on Asia. In 1H21, our reported global wealth balances grew to approximately $1.7 trillion, an 18% increase compared with 1H20, with client assets and funds under management growing by 23%. In 1H21, our Asia wealth balances reached $810 billion. We recruited approximately 600 Asia wealth front-line FTEs, and our Asia affluent and high net worth customer base grew 7%, compared with 1H20, to 1.7 million customers. Wealth revenue in Asia increased by 26% compared with 1H20, including the benefit of $359 million of insurance market impacts, and we also rolled out Pinnacle, our digital financial planning wealth platform, to five cities in mainland China with more locations in the pipeline.
In Asia, we continued to put in place the building blocks for future growth. We further grew our Pinnacle digital wealth management business in mainland China, recruiting more than 350 new wealth managers and accelerating our coverage expansion to five cities – Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou. We also improved our ability to serve the wealth needs of customers in Asia and the Asian diaspora by expanding our digital wealth capabilities in Hong Kong, Malaysia and Singapore, and reorganising our wealth businesses in continental Europe and the US to better connect international customers to the global wealth opportunity. The benefits of our investment in Asia wealth were evident in the first six months of 2021 through strong customer acquisition, increased fee income and significant growth in wealth balances.”
On HSBC 2021 1H Interim Results
Noel Quinn, HSBC Group Chief Executive :
“These are good results that reflect the return of growth in our main markets and marked progress in the execution of our strategy. We were profitable in every region in the first half of the year, supported by the release of expected credit loss provisions. Our lending pipeline began to translate into business growth in the second quarter and we further strengthened that pipeline during the half. This performance enables us to pay an interim dividend for the first six months of 2021.
I’m pleased with the momentum generated around our growth and transformation plans, with good delivery against all four pillars of our strategy. In particular, we have taken firm steps to define the future of our US and continental Europe businesses, and further enhanced our global Wealth capabilities. We are focused on executing the growth and transformation plans we announced in February.”
HSBC Private Banking
In September 2020, HSBC appointed Annabel Spring as the new Chief Executive of HSBC Global Private Banking, one of the largest international private bank with more than $353 billion Assets under Management (AUM). Charlie Nunn is the current CEO of HSBC Wealth and Personal Banking.
HSBC Wealth and Personal Banking division was created earlier in 2020, when HSBC combined its retail banking and wealth management, asset management, insurance and private banking business units, to become one of the world’s largest global wealth managers with over $1.7 trillion (2021 1H).
HSBC Private Banking is part of HSBC Group, one of the world’s largest banking and financial services organisations with $2.97 trillion assets as of 30th June 2021. HSBC Private Banking seeks to be the leading international private bank for business owners and their families.
Global Private Banking, operate as a distinct business unit and brand, growing client assets in 1st half of 2020 to $353 billion and net new money (inflow) of $5.3 billion.
- HSBC Private Bank: $353 billion
- HSBC Retail Wealth: $357 billion
- HSBC Premier & Jade: $445 billion
- HSBC Asset Management: $263 billion
- Total: $1.4 trillion (2020 1H)
In 2021 1H, HSBC has grown total AUM to $1.7 trillion, with $810 billion AUM from Asia.
HSBC Growth Plans in Asia
In February 2021, HSBC announced its plans to invest over $3.5 billion in the next five years and 5,000 new hires to accelerate the growth of its Wealth and Personal Banking (WPB) business in Asia and drive its ambition to become the leading wealth bank in the region.
Related:
- HSBC Appoints Annabel Spring as Chief Executive of Global Private Banking
- 2020 Top 10 Largest Family Office in the World
- 2020 Top 10 Largest Multi-Family Offices in the World
- 2020 List of International Private Banks in Hong Kong
- 2020 List of International Private Banks in Singapore
HSBC Wealth Business Grows in Asia to $810 Billion, Hires 1000 in 2021
HSBC wealth business in Asia is also growing fast with almost $810 billion or half of HSBC’s global $1.7 trillion wealth assets is in Asia. In 2021, HSBC in Asia is also on track to hire over 1,000 client-facing wealth management roles as part of HSBC’s strategy to become the leading wealth manager in Asia by 2025.
In Q1 2021, HSBC set up a new onshore private banking business in Thailand and launched a dedicated Independent Asset Managers’ desk in Singapore to meet the needs of family offices and independent advisors managing wealth on behalf of their clients.
In May 2021, HSBC launched a new institutional family office service in Hong Kong and Singapore, providing family offices access to HSBC Investment Banking specialists, products and services.
In Mainland China, HSBC expanded their new mobile personal wealth planning service, HSBC Pinnacle, to 5 cities – Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou, with 4 new products by HSBC Life China, including a market-first GBA unit-linked fund.
HSBC’s Global Markets also continues to build wealth solutions, increasingly on digital platforms for FX, Equities, Bonds, structured products and private placements for clients in Hong Kong, Mainland China, Malaysia and Singapore. HSBC Global Markets is also a leading provider of sustainable investments across asset classes, including Asia’s first RMB green certificates of deposit for retail investors in Hong Kong in Q1 2021.
2021 1H HSBC Wealth Revenue:
- Investment:$4.8 billion
- Life Insurance: $1.8 billion
- Global Private Banking: $935 million
- Asset Management: $597 million
- Personal Banking: $6.1 billion
- Others: $435 million
- Total Revenue: $11.4 billion
- Profit before Tax: $3.8 billion
HSBC AUM:
- Total Wealth AUM: $1.7 trillion
- Asia Wealth AUM: $810 billion
HSBC:
- HSBC Hires UBS Stefan Lecher as Regional Head of Investments & Wealth Solutions APAC
- HSBC Private Bank Appoints Jackie Mau as Head of Global Private Banking for China, Target 5 Million HNWIs in China
- HSBC Private Bank Launches Online Trading Platform to 10 Markets, 20 Hours Support, $2 Million Per Trade and $10 Million Daily
- HSBC Private Bank Expands in Asia, Appoints Chris Harwood as New Market Head of ASEAN and Australia
- HSBC Appoints David Liao & Surendra Rosha as New APAC Co-CEOs, Peter Wong Retires
- HSBC & Nielsen Survey: 82% of China GBA Mainland Investors to Invest in Wealth Management Connect
- HSBC Wealth Business Grows in Asia to $800 Billion, Hires 1000 in 2021
- HSBC Private Bank Gives Family Office in Asia Access to Investment Bank and Private Deals
- HSBC, Citi and Standard Chartered to Add 6,600 Wealth & Private Banking Jobs in Asia
- HSBC Appoints Annabel Spring as Chief Executive of Global Private Banking
Related:
- 2020 Top 10 Largest Family Office in the World
- 2020 Top 10 Largest Multi-Family Offices in the World
- 2020 List of International Private Banks in Hong Kong
- 2020 List of International Private Banks in Singapore
About HSBC
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of $2.97 trillion (30/6/21), HSBC is one of the world’s largest banking and financial services organisations.
HSBC Private Banking
As part of the HSBC Group, one of the world’s largest banking and financial services organisations, HSBC Private Banking seeks to be the leading international private bank for business owners and their families. It provides clients with wealth, business and family succession solutions in the largest and fastest growing markets around the world. HSBC Private Banking is the marketing name for the private banking business conducted by the principal private banking subsidiaries of the HSBC Group.
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