Chillin' out till it needs to be funded
GE bought Metlife deposits and online bank in the US in the beginning of Decvember and closed Christmas week with the purchase of HSBC’s card and personal loans portfolio with its local partner Bank of Ayudhya in Thailand, getting out of 40% of its global markets being a key deliverable to the Gulliver’s Travels saga being written. HSBC’s Asian insurance operations are also on sale while it exited Private Banking in small op in Japan in November in the week before Christmas to Credit Suisse AG
Bank of Ayudhya stands behind Krung thai and Bangkok Bank in Thailland with a 33% GE stake and a $30 bln assets before the acquisition
The bank has also been imprioving its Cost Income Ratio in the large megalithic Hongkong operations and strategic markets in Asia include China, Singapore and India. Thai government is relaxing rules for Foreign banks to allow a “largesse” of 20 branches, while Bank of Ayudhya’s acquisition will give it unlimited scale as a larger operation.
Meanwhile Maybank in neighbour Malaysia walked away with the Euromoney awards in Private Bankin g with MYR 40 bln in assets even as Julius Baer and Borston Consulting Group joined the ranks of those with the know how to measure and stroe ASian wealth, as also Indian Kotak as Asia becomes the nerve centre of retail , invesment banking and wealth growth. Even as local units independently grow despite the tumultous capital concerns of European debt LatAm competition is still strung by its American/European roots and the debt refill.
HSBC has already got a special dispensation from the UK government to not count all its international assets towards enhanced UK Capital requirements and taxation if any is envisaged laterr may similarily not be enforeced as the bank is kept happy for its good performance remoivng probability of HSBC moving headquarters’ domicile outside UK
The bank is getting rid of 1200 retail jobs ahead of its approval for RBS branches’ acquisition in India and has a less than $10 bln net exposure to Europe.
Meanwhile anti trust requests forced First Niagara to divest select counties’ HSBC assets purchased by Keybank last week. 26 branches in 4 upstate NY counties and 11 others were divested to reduce the size of the merged First Niagara asssets in Buffalo. This reduces depostis added to First Niagara by $2.4 bln. Key was an interested bidder in the M&A purchase of HSBC’s assets in Buffalo, NY since 2007 adding to the GReat Lakes and NE heavy Keybank’s $58 bln low cost deposits. The bank has nearly $50 bbln in loans