HSBC to expand banking network in RP

The Hong Kong and Shanghai Banking Corporation (HSBC), known for its slogan "The World's Local Bank" is expanding its network of savings bank in the Philippines, owing to the favorable economic environment in the country.

As soon as the Bangko Sentral Ng Pilipinas (BSP) will release its approval for more HSBC savings bank branches, HSBC president and chief executive officer (CEO) Mark Watkinson said the bank will establish about five more savings bank, initially around Metro Manila.

However, Watkinson clarified that although the target of the bank is to open more savings banks this year, it would still depend on the BSP's approval as to when to open.

Currently, there are a total of 16 HSBC Savings Banks, which are under the HSBC Savings Bank Philippines Inc.

The bank acquired these 16 licenses to open savings bank from PCI Bank in the year 2000.

"We still have to evaluate either we will open the savings bank through acquisition or by purchase," Martin Cook HSBC Philippines senior vice president and head of personal financial services said.

He said HSBC had used up the license from BSP to open seven main branches in the country after opening its first Mindanao branch in Davao last December and recently the second Cebu branch, which will formally open next week in March 2.

HSBC's other five main branches are located in Binondo, Makati, Ortigas, Quezon City and Cebu Business Park.

Cook said the bank recently applied to the BSP for a license to expand their savings bank.

HSBC, meanwhile, soft opened its second Cebu branch located in AS Fortuna Street in Banilad recently signifying the bank's confidence for growth in Cebu.

According to Cook, Cebu is one of the bank's valued markets with 90 percent of its total depositors availing wealth management service, which is HSBC's specialized service for the "wealthy community" with a minimum deposit of US$60,000 and own financial relationship manager in the bank.

HSBC has over a million clients in the country. About 825,000 are credit card customers and the rest are high-end clients holding wealth management account.

The bank has been operating in the Philippines for over 30 years. It is one of the world's largest banking and financial services organizations with over 9,500 offices in 76 countries and territories and assets of US$1,738 billion as of June 30, 2006.