HSBC reiterated its commitment to mainland China as a “priority market” after two sources said the lender was reducing staff numbers at its digital wealth-management business Pinnacle by nearly half, or about 900 people.
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“Our ambition is to become the leading international wealth manager for mass affluent and high-net-worth clients in mainland China,” an HSBC spokesperson said in a statement, without directly addressing staffing. “In 2024, we grew our wealth invested assets in mainland China by 61 per cent compared to 2023.”
Pinnacle, launched in 2020, sells insurance and fund products through a digital platform. It employed about 2,100 people at two of its main units as of the end of June last year, according to Reuters’ calculations based on company disclosure and official business records.
The reduction underscores the challenges the Asia-focused bank faces to boost growth and profitability in China at a time when it is slashing costs to increase returns.
Reuters reported in October that last year, Europe’s largest lender by assets started probing staff compensation structures and whether suppliers had inflated expenses, contributing to a sharp spike in costs that outpaced revenue at Pinnacle.
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The staff reduction involves lay-offs, natural attrition and transfers to other units within the banking group in China, said the two sources, who have direct knowledge of the decision but declined to be identified due to the sensitivity of the matter.
The London-headquartered bank’s new CEO, Georges Elhedery, launched a sweeping restructuring exercise, involving job cuts, to reduce long-term costs and boost profits at the bank.