HSBC sees positive growth prospects in southern PHL

MANILA, Philippines -  While international bank Hong Kong Shanghai Banking Corporation (HSBC) is cautiously optimistic of its over-all business outlook for this year, the bank on the other hand likewise sees good growth prospects in the Southern Philippine market.

HSBC president and chief executive officer (CEO) Tony Cripps said that although the bank is not planning to add physical branches in the Visayas and Mindanao areas, it is intensifying its electronic banking capabilities, to hit a high double-digit growth this year.

Although, the bank’s growth outlook in the Philippines is bullish, he said they are also preparing and very cautious of the effects on the economic problems faced by the European zone, and the United States.

In the Philippines, the bank anchored its positive growth on the dynamic retail banking business, such as the wealth management, insurance, mortgage, and credit card products, or the retail banking and wealth management (RBWM). 

In Cebu alone, since the bank entered into the robust housing loan offering, it has developed partnerships with major developers, as demand for house and lot package is strong.

HSBC Philippines senior vice president and branch banking area head for Cebu and Davao, Debbie Dy Realiza, said that the Cebu branch recorded a 100 percent growth in home loans since it started some two years ago.

Cripps said the bank is boosting its operations in the Philippines, by expanding its retail banking and wealth management (RBWM) products, such as mortgages, insurance, credit card among others.

HSBC entered into active participating in the housing loan in the last two years, due to the encouraging real estate sector in the Philippines.

So far, Cripps said consumer lending posted encouraging results, thus the bank is considering its retail banking segment, as its growth driver.

Globally, Cripps said that the lingering economic pressure in US and Europe could change the banks’ entire outlook, although he said that HSBC is expecting encouraging growth from the Asian markets, including the Philippines.

“We are still waiting how these two [Europe and US] would stabilize their respective economies,” Cripps said adding that although Europe’s debt crisis is now being helped, HSBC is seeing risks in terms of resolutions.

The resolution of Europe’s debt crisis, would largely impact the global economy.

Meanwhile, Cripps said that the bank has noted a good growth performance in emerging markets in Asia, including India, Indonesia, Sri Lanka, Malaysia, Singapore and the Philippines.

Cripps added that HSBC will introduce more product diversifications and offering this year, in order to take advantage of the Philippines’ healthy banking market. (FREEMAN)