HSBC CFO Highlights Hong Kong, Wealth Growth as Exits Fund Investment

HSBC CFO Pam Kaur said the bank remains focused on investing in growth while maintaining cost discipline, with Hong Kong, wealth management, trade finance and the U.K. among its priority areas. Speaking at the Barclays Global Financial Services Conference, Kaur said HSBC’s four businesses were growing and generating returns above the minimum targets the bank set in February. She said the company’s targets are “the minimum to which we manage the bank,” rather than a cap on performance.

Kaur also discussed her planned departure after 13 years at HSBC, including two years as CFO. She said she had completed 40 years in the financial-services industry and believed this was an appropriate time to pursue other leadership opportunities. Kaur said her immediate priorities are ensuring an orderly handover and continuing to advise Group Chief Executive Georges Elhedery on strategic priorities after her CFO tenure.

Kaur described HSBC’s Hong Kong operation as a major source of profitability and momentum. While the business reported a roughly 45% return on tangible equity in the second quarter using risk-weighted asset allocations, she said a leverage-exposure-based approach would still produce a return “well into 30% plus.”

She said HSBC continues to see sustained new-customer activity in Hong Kong. The number of new-to-bank customers in July and August remained at the average level recorded during the first half, which Kaur called an encouraging sign for both the market environment and HSBC’s ability to retain share.

HSBC’s wealth-management business also continued to expand across Asia. The bank reported $22 billion in net new money during the second quarter, which Kaur said represented an annualized 8% growth rate. While China’s policies on outbound investment have drawn investor attention, Kaur said Hong Kong’s status as an international financial center remained supported by the latest Chinese mainland Five-Year Plan update. She said HSBC remained encouraged by participation from retail and corporate customers in Hong Kong’s broader financial ecosystem.

HSBC has announced 15 business exits since the start of 2025. Kaur said the businesses being exited account for approximately $1.1 billion in costs and roughly $2 billion in revenue. The revenue impact in the current year is expected to equal about one-third of the $2 billion total. By the end of the following year, the impact is expected to reach about three-quarters of the full amount. The effects in 2027 and 2028 are expected to be more concentrated in banking net interest income, reflecting exits including Egypt retail and Australia. Kaur said the bank is redeploying released costs into core business areas.