HSBC has announced plans to exit its personal banking and wealth management business in New Zealand as part of a strategic review focusing on profitability and expansion in Asia.
The London-headquartered bank said the wind-down process will occur over several years in a phased manner. The bank concluded it can "no longer justify" investing in the New Zealand retail business given its scale and changing market requirements.
HSBC is assisting its local customers to switch to other providers and says it will remain business as usual for now. However, the decision suggests the retail banking exit is inevitable.
The announcement comes after the bank considered selling its New Zealand retail operations last year. The exit is the latest move in HSBC's efforts to streamline and pivot towards higher-growth Asian markets, with planned sales of businesses in France, Greece, Russia and Canada.
While HSBC is exiting retail banking in New Zealand, it intends to continue and expand its wholesale banking operations serving large companies and financial institutions.
In summary, HSBC's strategic review has determined that its New Zealand retail banking business is no longer profitable or scalable enough to justify further investment, leading the bank to plan an exit over the coming years. The move is part of HSBC's broader Asia pivot and push to focus on more lucrative operations.
