HSBC not making acquisitions in Japan
HSBC Chairman, Stephen Green, has announced that the bank is not considering acquisitions in Japan. Instead, Europe’s largest bank is to concentrate on growth by itself as it rolls out retail banking in the world’s second-largest economy.
The Chairman added that there is potential for at least 35 HSBC branches in Japan over the mid to long term. HSBC plans to open its first retail branch in Japan in January 2008 and is one of many large financial institutions competing for a slice of Japan’s estimated £6.5 trillion pounds in household financial assets.
The Chairman commented that their expansion strategy in Japan is focused on organic growth. There is no need to consider acquisitions as part of developing the business.
The bank’s objective is to target Tokyo, Osaka and other major Japanese cities in its quest to tap into the millions of people regarded as “mass affluent”. HSBC estimates that 6.3 million people in Tokyo and Osaka fall into that category, suggesting they have at least £43,000 in liquid assets.