HSBC BankAustralia’s 2006 decision to concentrate on its core competencies has paid dividends with the bank reporting a strong result for the year ended December 31, 2007.
The bank reported that it had achieved a pre-tax profit of US$124 million with loans and advances to customers increasing by 29.2 per cent to US$11,339 million and customer accounts increasing by 34.5 percent to $US11,418 million.
HSBC Bank Australia chief executive officer Stuart Davis said the performance reflected the benefits that had flowed from the 2006 changes.
“In 2006 we transformed our strategy in Australia to focus on our areas of natural strength, areas where the HSBC Group’s size and global presence provided us with a competitive local advantage,” he said.
“We sold HSBC Stockbroking as well as our margin lending and broker originated mortgage portfolio at an optimal point in the economic cycle.”
Looking at the bank’s global banking and markets business, Davis said HSBC was working to identify additional opportunities to leverage the bank’s strengths in the Australian wealth management value chain, particularly with respect to securities services and wholesale and retail investment products.
He said that HSBC had established HSBC Alternative Investments in Australia, a move that was strategically important.
“We see Australia as arguably the most significant opportunity for alternative investment funds in Asia over the next five to 10 years,” Davis said.
