LONDON, UK: HSBC has announced its decision to wind down its wealth and personal banking business in New Zealand as part of its ongoing strategy to exit less profitable markets and concentrate on expanding in specific Asian markets.
The bank revealed the planned process, resulting from a strategic review, which will be implemented over several years in a phased manner.
In a statement, the London-based lender stated that it can no longer justify investing in the New Zealand business, considering the evolving operational requirements in the market and the scalability of the business. The decision follows HSBC’s previous announcement last year regarding the review of its retail banking business in the country, with a potential sale being considered.
New Zealand now joins the list of markets from which the dual-listed bank, listed in both London and Hong Kong, has chosen to withdraw. HSBC’s strategic focus is shifting towards targeted growth opportunities in selected Asian markets, aligning with its long-term vision for expansion and profitability.
HSBC has been strategically reshaping its global operations, streamlining its business portfolio to optimize performance and enhance profitability. By exiting from less profitable businesses, the bank aims to allocate resources to areas with higher growth potential and a more favorable competitive landscape.
While the wealth and personal banking wind-down in New Zealand may take place gradually, HSBC remains committed to serving its existing customers during the transition period. The bank’s priority is to ensure a smooth and well-managed process that safeguards the interests of its clients and minimizes any potential disruption.
HSBC’s decision to exit the New Zealand market reflects its strategic determination to optimize its global operations and focus on markets that offer the greatest potential for sustainable growth and profitability.