HSBC expands UK wealth division with hiring spree

HSBC is embarking on a significant recruitment drive to enhance its wealth management services in the UK, aiming to double its assets under management to approximately £100 billion over the next five years. This initiative comes as the bank seeks to strengthen its position against increasing competition from British rivals like Lloyds Banking Group and Barclays, who are also expanding their wealth management offerings. The new hires will primarily be relationship managers, responsible for providing tailored services to affluent clients, thereby generating substantial fees for the bank. The recruitment effort is part of a broader strategy to diversify HSBC's income streams, making them less vulnerable to fluctuations in interest rates. Despite a previous restructuring plan that aimed to cut 35,000 jobs by 2022, the bank is now focusing on growth in its wealth and private banking operations. The expansion will see new positions created across various UK locations, including Peterborough, Truro, and Telford, reflecting HSBC's commitment to enhancing its local presence. The strategic direction is being led by Jose Carvalho, head of wealth and personal banking at HSBC UK, and continues despite recent leadership changes within the bank. Nuno Matos, the former head of wealth and personal banking, resigned shortly before Georges Elhedery took over as group chief executive. Elhedery has expressed confidence in the existing strategy, indicating that the bank is on track for growth and performance. As of December last year, HSBC's global wealth and private banking division managed $1.19 trillion in customer assets, marking a 17% increase from 2022. The division's revenues also saw a 12% rise to $4.3 billion in the first half of 2024, underscoring the bank's successful expansion efforts in the wealth management sector.