10 Western Banks that Started Expansion on the East
How Julius Baer Group plans to expand in Asia?
In contrast to much of the rest of the world, the wealth management industry is growing quickly in Asia even now, reflecting the increase in the number of high-net-worth individuals benefiting from the region’s extraordinarily resilient economic growth.
Dubbed Julius Baer's «second home market», Asia continues to fuel the group’s growth across key indicators including new money, profits and AUMs (assets under management) – the region accounts for 26 percent of assets by client domicile, surpassing the second-ranked Western Europe’s 25 percent.
Plans: Julius Baer aims to establish a majority-owned joint venture to tap the rapidly growing wealth in the world’s second-largest economy of China and has started looking for a partner. Julius Baer maintains its presence in Asia through offices in Singapore and Hong Kong but plans to expand to Mainland China.
How Bank of America plans to expand in Asia?
Bank of America operates in Asia for a long time since it opened its first office in Tokyo. BofA expanded its investment banking headcount in Asia last year by hiring about a dozen senior bankers, making it one of the most aggressive recruiters among other global banks in the region and plans to hire 50 bankers for Asia deal making team in 2020. Bank of America Asia Pacific team is spread across 19 cities in 12 market.
Plans: With the renewed focus on investment banking, BofA is aiming to break into the top four of Asian investment banking advisory league tables in the next few years
How HSBC plans to expand in Asia?
In terms of profit generation of the bank, Asia is massively dominant. It delivered 84 percent of profits in 2019, against 10 per cent from the Americas and just 6 per cent from Europe, the Middle East and Africa.
In 2020 HSBC shares have been more heavily traded in Hong Kong than in London for the first time since the late 1990s.
Plans: HSBC Holdings PLC HSBA.L expects to achieve double-digit asset growth in its newly combined wealth business in Asia Pacific in the next three years, as it looks to grab a bigger share of the growing rich population.
How Wells Fargo plans to expand in Asia?
There has been continued interest in US dollar assets, which is an important part of bank’s distribution and capabilities in Asia. Wells Fargo have continued to see a strong growth in Asia, particularly as Asian investors continue to be very long in terms of US assets.
Despite trade tensions, between US and China, which has an impact on other markets across Asia, Wells Fargo still experienced continued strong growth in the region.
Wells Fargo headquarters in Hong Kong, and branches in Seoul, Beijing, Shanghai, Singapore, Taipei, and Tokyo.
How JPMorgan Chase & Co. plans to expand in Asia?
J.P. Morgan Chase & Co. plans to double the number of private bankers serving Chinese clients from Singapore over the next two years, signaling its ambition to tap growth from Asia's second-largest wealth market. "With rapid wealth creation in China, there is a need for insightful advice around how to manage the new-found wealth".
In 2020 J.P. Morgan has expanded its Asia Pacific trade finance team, hiring more than 20 trade finance specialists coming in key markets, including China, Hong Kong, India, Korea and Singapore, among others, bolstering the firm's capabilities and enhancing its client service offering.
The new executives will be responsible for a range of functions, including high level advisory services, product solutions, client services, sales and implementation.
JP Morgan has 17 regional branches in Asia & Pacific region. However, Hong Kong and Singapore remain the most important hubs.
How Citygroup plans to expand in Asia?
The bank in Asia supports 17 million direct consumer clients and several thousand institutional clients. Asia Pacific generates around a quarter of Citi’s earnings and is the bank’s largest regional contributor outside of North America.
Citi supports Asia Pacific’s leading corporates across 50 markets with over 20 Asia desks worldwide and has the largest network along the Belt and Road Initiative (BRI), with the ability to do business in 60 out of 70 BRI markets.
Asia has led the way for various innovations globally and in Asia. In 2018, Citi’s chatbot on Facebook Messenger was launched in Singapore, a first for Citi worldwide
How UBS plans to expand in Asia?
UBS manages invested assets of CHF 160 billion for clients in the region, representing 19.7% of the Global figure (as of Q2 2018) and achieved 23% increase in 2017 year-over-year invested assets, the highest percentage of all UBS regions.
UBS Wealth Management is the largest and fastest-growing wealth manager both globally and in Asia Pacific.
28% increase in invested assets year-over-year in 2017 for Wealth Management APAC.
UBS have launched the Evolve lab in Singapore, which focuses on creating new innovative and user-centric solutions for their clients; and the Digital Hub in Hong Kong, which provides an engagement, networking and knowledge-sharing platform for the clients
How Credit Suisse plans to expand in Asia?
Asia's largest economy has the most millionaires after the US and its financial opening this year has presented global banks and asset managers with an unmatched opportunity for expansion. Credit Suisse wants Asia to make up 25 percent of group revenue in a couple of years, from 17.5 per cent now.
Plans: to double its headcount in China over five years as the firm accelerates its pursuit of the nation's wealthy. It will add to its China workforce as it targets a 100 per cent increase in revenue there.
Much of the firm's build-out will focus on expanding advisory and investment banking services for the ballooning ranks of China's rich.
Credit Suisse Group will continue to invest across its platforms in China and closely integrate its onshore operations with its businesses in Hong Kong and across the region.
How BNP Paribas plans to expand in Asia?
BNP Paribas has achieved an average yearly increase of +18% in assets under custody over the last six years in Asia Pacific.
In the past, the big global banks served their wealthy clients in Asia mostly from the big offshore centres of Singapore and Hong Kong, offering a wide range of international investment products. More recently, they have been establishing onshore operations as well to tap into the growing pool of assets held in those countries.
Plans: to expand its corporate lending book by more than 50 percent in Asia.
The bank plans less big corporate lending against its own balance sheet and more indirect financing and advisory work.
BNP Paribas plans to boost assets under management in Asia to US$120 billion by 2020, from about US$100 billion at present
How Santander plans to expand in Asia?
Banco Santander pushes its business with China to capitalize on the growing trade and investment flows between Latin America and Asia.
Plans: to open more offices in Asia, be a top three bank for a select set of regional clients, and finalise a rural bank joint-venture with China Construction Bank over setting up a rural bank-venture (JV).
It is predicted that income from the region would grow at double the rate of other parts of the world, gradually increasing the market share of Asia in Santander’s overall balance sheet.
The plan is for the JV, in which Santander will be a minority shareholder, to establish a network of 100 rural banks across the country to reach people based in smaller cities and towns. Even when established the JV is likely to take several years until it begins to make money, so for the coming few years Santander will focus more on building revenues from trade finance, foreign exchange, and corporate and investment banking activities between Asia and Latin America or Europe.
China’s rise to geopolitical powerhouse has been startling in its speed and magnitude. The country now wants strategic space in East Asia, and is no longer willing to play second fiddle to America. The second biggest economy of Asia - India had its own issues to solve. The country’s focus for the last fifty years has been Pakistan, which it violently broke with during the Partition. Struggles over Kashmir, and with China, over territorial disputes in some of the highest places in the world.