HSBC says Hong Kong commercial property loan portfolio improves significantly
HSBC CFO Kavita Mahtani said the bank's Hong Kong commercial real estate loan portfolio has improved markedly. She noted demand for Central district offices is rising with lower vacancy, though Kowloon East and some retail sectors face pressure. She also discussed AI's impact on banking jobs and den
HSBC chief financial officer Kavita Mahtani said the bank's Hong Kong commercial real estate loan portfolio has improved significantly. She attributed the improvement to the city's economic performance, which has boosted demand for office space in the Central district and reduced vacancy rates. However, she noted that office properties in areas such as Kowloon East remain under pressure, and some retail sectors are taking longer to recover.
Asked about tighter mainland Chinese regulations on outbound investment, Mahtani said related regulatory changes between May and June prompted some competitors to suspend businesses in the area. She said HSBC has consistently complied with regulatory requirements and has actually seen business growth, adding that the group added an average of 100,000 new customers per month last quarter, similar to the monthly average in the first half of the year. She also said wealth management performance is affected by quarterly fluctuations, asset markets and a slowing macroeconomic environment.
Mahtani said the development of artificial intelligence is affecting banking workflows and some jobs may be affected, but it also creates transformation opportunities for employees. She did not disclose the impact of AI on the number of positions, stressing that AI is only assisting staff, not replacing them, and that human decisions and judgment remain central to customer service.
Responding to reports that HSBC plans to cut hundreds of jobs in its UK wealth management business, Mahtani emphasised that the UK wealth management operation remains an important market. She said the bank places great importance on customer service there and continues to increase investment in different areas, including hiring 1,000 junior staff.