Financial Services

Malaysia - RHB Bank to expand regionally

Source: Channel News Asia, 21 February 2012

RHB Capital has Malaysia's wealthy Chinese community firmly in its sights, as part of its strategy to merge with the country's biggest broker, OSK Investment Bank.

Mr Azlan, Chairman of the RHB Banking Group, is confident that the central bank clearance for a US$600 million merger with OSK will go through by the middle of this year. This will make RHB the biggest stockbroker in Malaysia, and he hopes that kind of firepower will attract the minority rich, which control a substantial amount of this country's wealth.

Singapore - More family offices expected to be set up in region

Source: Channel News Asia, 21 February 2012

The explosion of wealth in Asia may lead to a boom in family offices being set up in the region. Family offices are private companies that manage investments and trusts for families with more than US$100 million in investible assets.

Currently, there are about 100 family offices in Asia compared to about 2,500 which are based in the US and Europe. With China now having the second-highest concentration of billionaires in the world, experts expect the trend to change soon in Asia. With rising pressures to meet the needs of the next generation, private banks said they are beefing up their services to support this expected boom of new family offices in Singapore.

Japan - HSBC Withdraws From Japan Retail Banking

Source: Bloomberg, 23 February 2012

HSBC Holdings Plc, Europe’s largest bank, will withdraw from consumer banking in Japan, closing down six branches four years after starting the business. The U.K. lender is scaling back in parts of Asia, including Japan, South Korea and Thailand, as Chief Executive Officer Stuart Gulliver cuts costs and prepares for tighter capital rules.

The bank was seeking buyers for its Premier unit, which targets wealthy individuals in Japan, three people familiar with the matter said on Jan. 25. The London-based bank started an auction, with the option of shutting the division if offers weren’t attractive enough, two of the people said. HSBC Premier was started in 2008.

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