HSBC to expand in Cebu, Davao

Hong Kong Shanghai Banking Corporation (HSBC) is currently making negotiations with the Bangko Sentral Ng Pilipinas (BSP) in a request for a branch expansion in Cebu and Davao.

HSBC chief executive officer (CEO) Warner Manning in an interview said that the bank has seen the opportunity to open up an additional branch in Cebu, and in Davao this year, or early next year.

He said the second branch in Cebu will be twice the size of its current branch located at the Cebu Business Park (CBP).

Of the 21 HSBC branches in the Philippines, most of these are located in Luzon, or in Metro Manila. This time, he said it is a fertile time for the bank to expand in the regional areas like Cebu and Davao.

Being an international bank, with presence in almost every key area in the globe with over 9,800 offices in 77 countries, Manning said the bank has find its niche to capture Filipino depositors especially those who are dealing with international trade.

In fact, the bank recently introduced its newest service desk in Cebu to provide assistance to the exporters and importers, by providing the "Trade Service", a dedicated service facility for global businessmen.

He said as soon as BSP will approve its application for an opening of one more branch in Cebu, HSBC will immediately work on the opening of its second branch here.

Aside from finding its niche in its international banking expertise, which effectively draws in more clients, HSBC which has been in the Philippines for over 131 years is seeing a good growth potential in the credit card business.

In an earlier interview with HSBC senior vice president for marketing and product development Suresh Nanoo, he said that immature market for credit card usage in the Philippines has given HSBC a huge opportunity to accelerate growth.

Although HSBC is not the number one credit card issuer in the Philippines, it claimed that it is the fastest growing issuer in the country.

In 2004, this global banking powerhouse, hit the 500,000 number of credit card membership, a 35 percent growth over the previous year.

Just like any credit card issuer, Nanoo said HSBC also has past due problems, but it's minimal and it is able to control its delinquency issues.

The bank is able to widen its consumer base through the credit card business, and reach out to broader market aside from corporate, because of the fast moving credit card trade.