The chief executive for London-based bank HSBC said the concernplans to build its insurance business significantly in the futureas it continues to search for new growth opportunities.

Michael Geoghegan, group chief executive of HSBC, made hiscomments during the Morgan Stanley European Banks and FinancialsConference in London yesterday.

Mr. Geoghegan said that while the bank has “a very low footprintin insurance,” the bank's chief executive of insurance, CliveBannister, is “taking up the challenge” to build a “significantinsurance and wealth management business” across the bank'sfinancing in commercial and personal banking.

He said growth would come from a combination of acquisition andorganic growth. The firm has an insurance penetration of 9 percentof its customer base and Mr. Geoghegan expressed confidence thatnumber can be expanded.

“We probably have the best customer distribution capabilityacross the globe with over 10,000 branches and 120 millioncustomers,” he said. “The opportunity to sell to over 100 millioncustomers in 82 countries is a great place to start an insurancechallenge.”

Acquisition, he noted, would probably be the primary driver indeveloping its expertise.

“It is, without doubt, a large challenge for us, but one webelieve we can succeed in,” he said.

HSBC recorded revenues of $65 billion last year, up 13 percentfrom the previous period with profit before tax of $22.1 billionand earnings per share of $1.40.