HSBC completes consolidation of Philippine operations after thrift exit

MANILA, Philippines — British banking giant HSBC has completed the consolidation of its operations in the Philippines after voluntarily surrendering the license of its thrift banking arm to the Bangko Sentral ng Pilipinas (BSP).

BSP Deputy Governor Chuchi Fonacier said HSBC Savings Bank Philippines Inc. has ceased to operate as a bank last Oct. 2.

Fonacier said the central bank’s Monetary Board issued Resolution 1274 last Sept. 28 approving the voluntary surrender by HSBC Savings Bank of its banking license to the regulator.

In December last year, the British banking giant announced the consolidation of its banking operations in the Philippines to deliver a more streamlined journey to support the growth of its retail banking customer base.

HSBC Philippines is simplifying its retail banking business by combining its retail banking operations with that of HSBC Savings Bank to improve customer experience and broaden its service offerings.

Its investment and insurance needs was centralized through HSBC Wealth Inc. following the creation of HSBC Investment and Insurance Brokerage Philippines Inc. (HIIB) last September.

HSBC Philippines invested over $6 million to establish HIIB to enable eligible clients, including HSBC Savings Bank customers who transferred to HSBC Philippines, to access leading wealth management services to meet their financial goals.

With the consolidation, HSBC Philippines is now focusing on its commercial banking, as well as global banking and market business.

The restructuring and addition of the HSBC Savings Bank branches will fit in with HSBC’s plan to enhance its retail banking business in the Philippines where the group has been expanding and upgrading its branches across the Philippines over the past two years.

HSBC Savings Bank emerged as the 11th largest thrift bank in the Philippines in terms of assets last year with P15.23 billion, and 15th in terms of capitalization with P1.52 billion.

Amid the consolidation, the ranking of HSBC Savings Bank in the industry dropped to 23rd in terms of assets, with P1.94 billion, and 14th in terms of capitalization, with P1.73 billion as of end June this year.

On the other hand, HSBC improved its ranking among universal and commercial bank to 14th spot after boosting its asset base to P217.33 billion as of end June from 15th place, with P202.75 billion as of end 2022,

In terms of capitalization, HSBC ranked 15th, with P15.8 billion in end June this year from 18th, with P14.79 billion last year.