HSBC Opening New Bank Branches in US

Wall Street Journal Reports HSBC Branch banking Strategy
reporting by Sara Schaefer Muñoz at sara.schaefer-munoz@wsj.com

"...HSBC quietly opened 18 retail branches in the U.S. in 2009 and plans six additional locations this year, trying to use its widespread name recognition to win business from consumers with ties to Asia, Europe and Latin America.

In December, the London bank opened a branch in the Chinatown section of San Francisco. Redmond, Wash., the hometown of Microsoft Corp. and a slew of international employees, got a new HSBC branch in February. The bank's Koreatown office on Wilshire Boulevard in Los Angeles opened its doors March 4."

HSBC Currently Ranks 13th in Deposits

"...HSBC has long coveted the world's largest economy. The bank had $84.08 billion in U.S. deposits as of June 30, the latest date for which figures are available from the Federal Deposit Insurance Corp. But while deposits have grown more than 50% since 2004, HSBC ranks just 13th in deposits in the U.S., trailing U.S.-based rivals like Bank of America Corp. and J.P. Morgan Chase & Co., as well as the U.K.'s Royal Bank of Scotland Group PLC.

Since 2006, HSBC has opened nearly 100 branches in the U.S., most of them in major urban areas, expanding the company's presence beyond its roots in New York. HSBC's largest U.S. unit now has 382 offices scattered throughout the state, and an additional 102 branches in 11 other states and Washington, D.C., according to the FDIC."

HSBC Already has A Substantial Number of Local Branches in New York

"...In 2005, HSBC launched an online bank in the U.S., HSBC Direct, which has amassed $15.5 billion in savings deposits. The company also has lots of small-town brick-and-mortar branches, which some analysts worry aren't an ideal fit with HSBC's internationally focused push.

"The niche strategy itself is quite sensible," says Ronit Ghose, an analyst at Citigroup. "But they can't get rid of the fact they have all these legacy branches in New York state that don't seem to fit into their global strategy."

An HSBC spokeswoman says the presence in New York state helps provide scale and critical mass to compete in all segments of the market.

For full version of article please click here.

Cambridge Consulting Group specializes in helping financial institutions free up capital by eliminating real estate leasing obligations through negotiated lease buyout strategies. Financial institutions including Bank Of America and KeyCorp have saved millions of dollars by using this strategy to reduce their real estate costs. Foe more information on how Cambridge Consulting Group can help your bottom line please visit their website- www.commercialleaseterminations.com