HSBC, Hong Kong’s biggest lender, records increased deposits, loans in first quarter despite temporary closure of branches
- The lender’s first-quarter personal loan drawdowns are expected to jump 50 per cent from a year ago, despite having up to 70 per cent of branches closed
- HSBC is among 20 major local banks that temporarily closed various branches from early February because of the latest Covid-19 outbreak
The bank’s first-quarter personal loan drawdowns are expected to jump 50 per cent from a year ago, while deposits are estimated to rise by 5 per cent, according to Maggie Ng, head of wealth and personal banking at the Hong Kong office of HSBC.
“Since many of our staff and customers have been working from home amid the pandemic, we have provided a lot of digital tools and support so they can conduct banking transactions at home,” Ng said in a small group interview.
“It is like turning their homes into branches. This is why we can continue to serve our customers with the banking services they need even when we had to close up to 70 per cent of our branches early in March.”
The bank’s other businesses, however, have been hit hard by the closure of many branches. HSBC’s insurance sales in the first quarter are expected to see a 10 per cent decrease from a year earlier, while sales of wealth management products are also expected to post a decline, according to Ng, without providing details.
Hong Kong's bank branch closures as of March 25
| Bank | Number of Branch Closures |
| HSBC | 50 |
| Hang Seng Bank | 21 |
| BOCHK | 89 |
| Standard Chartered | 25 |
| Bank of East Asia | 17 |
| ICBC Asia | 13 |
| CCB Asia | 19 |
| OCBC Wing Hang | 14 |
| CMB Wing Lung | 12 |
| Shanghai Commercial Bank | 18 |
| China Citic Bank | 10 |
| Bank of Communications HK | 16 |
| Chiyu Bank | 13 |
| Nangyang Commercial Bank | 19 |
| Fubon Bank | 4 |
| Citibank | 4 |
Sources: Hong Kong Association of Banks and individual banks
“The decline in wealth management sales was not only because of the closure of branches, but also owing to market volatility such as the rise in US interest rates and worries about an economic downturn amid Covid-19,” she said.
