The chief executive for London-based bank HSBC said the concern plans to build its insurance business significantly in the future as it continues to search for new growth opportunities.
Michael Geoghegan, group chief executive of HSBC, made his comments during the Morgan Stanley European Banks and Financials Conference in London yesterday.
Mr. Geoghegan said that while the bank has “a very low footprint in insurance,” the bank's chief executive of insurance, Clive Bannister, is “taking up the challenge” to build a “significant insurance and wealth management business” across the bank's financing in commercial and personal banking.
He said growth would come from a combination of acquisition and organic growth. The firm has an insurance penetration of 9 percent of its customer base and Mr. Geoghegan expressed confidence that number can be expanded.
“We probably have the best customer distribution capability across the globe with over 10,000 branches and 120 million customers,” he said. “The opportunity to sell to over 100 million customers in 82 countries is a great place to start an insurance challenge.”
Acquisition, he noted, would probably be the primary driver in developing its expertise.
“It is, without doubt, a large challenge for us, but one we believe we can succeed in,” he said.
HSBC recorded revenues of $65 billion last year, up 13 percent from the previous period with profit before tax of $22.1 billion and earnings per share of $1.40.
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