HSBC and Hang Seng Bank integrate management, build common tech platform
HSBC CFO Kuo Pei-ying says the group is integrating management and building a common technology platform to simplify operations and improve efficiency. Mainland compliance demands boosted Hang Seng new account openings over 100 per cent. Loan growth comes from infrastructure and innovation, while da
HSBC chief financial officer Kuo Pei-ying says the group has announced plans to integrate management of HSBC and Hang Seng Bank and is building a common technology platform. The aim is to simplify operations, improve efficiency and enhance customer service. Kuo says the group will continue to benefit from the effect of having two brands.
In the second quarter, mainland China strengthened compliance requirements for offshore investment, Kuo says. Some competitors needed to raise their compliance levels, allowing the group to attract new clients. This drove a more than 100 per cent increase in new account openings at Hang Seng Bank.
Kuo notes that mainland regulatory requirements have not changed the product mix or client investment behaviour. However, rising interest rates have reduced the appeal of some insurance products, and fee income has been affected by a slowdown in the stock market. Mutual funds and structured product sales have risen, which Kuo attributes to changes in the market environment. She stresses that Hong Kong's status as a major international financial centre and the mainland's window to the world remains unchanged.
The group's loan growth comes from a wide range of sources, including infrastructure and innovative businesses, Kuo says. Hong Kong's retail loan portfolio is largely made up of mortgages, and trade loans in Asia are also performing strongly. Exposure to loans for data centres is very small and is not expected to become a major risk. Kuo adds that the group has not seen challenges in deposit growth.