HSBC’s Korean wealth management business is
the latest unit to be put up for sale as the world’s fifth largest
private bank slims down its operations in markets where it lacks
size.
The UK-based bank is also in discussions to
sell its operations in Pakistan.
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In a statement, HSBC said it was in talks with
the state-owned Korea Development Bank, a member of the KDB
Financial Group, on the possible sale of its retail banking and
wealth management business in Korea.
Sell-offs in line with strategy
The sale is in line with HSBC’s strategy
outlined in May 2011. The bank’s chief executive, Stuart Gulliver,
wants to cut annual costs by $3.5bn and sharpen the bank’s focus on
Asia by quitting countries or businesses where it lacks scale.
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By GlobalDataThe strategy has led to wealth management unit
sell offs in Japan, Mauritius and a re-focusing of its Middle
Eastern unit in the past five month.
HSBC unit to have government
owners
KDB Financial Group’s wealth management
operations are limited.
The Korean government has a minority
shareholding in KDB’s parent KDB Financial Group, as well as owning
Daewoo Securities, which also has a wealth management arm.
The group’s wealth management account balance
was KRW45bn ($39m) at the end of the 2011 second quarter.
