Resources state key to HSBC plans

THE head of HSBC Bank in Australia says economic strength in Western Australia’s resources sector is shaping up as the driving force behind its expansion ambitions. 

HSBC has opened four branches in Australia during the past year, including one in Joondalup earlier this month.

HSBC Bank Australia chief executive Paulo Maia said the bank’s strategic focus on international connectivity required a significant presence in WA, which was conveniently in the same time zone as its major Asian operations. 

“We have a very large base out of Hong Kong,” Mr Maia told WA Business News.

“Singapore is another large regional hub for us, in terms of our global markets and global banking operations; being on the same time zone helps us keep a very close eye on things.

“That’s more on the wholesale side of our business, but if you look at the retail part of the business we see the flow and people commuting to Asia and other places where we have important bases from Western Australia, so a very important feature of our presence in WA is to capture those flows.

“There’s a great opportunity both in our remote banking and capital management business, as well as in our commercial and corporate business.”

Mr Maia said HSBC had already built significant relationships with big names in the engineering sector in WA, and the bank would now look to build its equity capabilities, with a focus on large resources companies. 

“A lot of these companies are exporting to China and other parts of Asia where we already have a big presence,” he said.

“We have a hub in Hong Kong looking at equity raisings and we have a lot of interest from companies raising capital in Hong Kong and in China, and we’re focusing on those opportunities. 

“There are a lot of companies from Western Australia going to Hong Kong, going to Asia and talking to people, looking to raise finance.

“The Western Australian market is very much connected to Asia, to Europe and the UK and our overall strategy is to really position ourselves as the leading international bank operating in Australia.

“That requires us to be really close to customers who also operate here in Western Australia.”