HSBC (LON:HSBA) has streamlined its operations in the Philippines, surrendering the license of HSBC Savings Bank Philippines Inc. to the Bangko Sentral ng Pilipinas (BSP) on October 2, 2023, as part of a strategic move to enhance its retail banking business. This consolidation has led to a decrease in the bank's assets from P15.23 billion to P1.94 billion, with capitalization now standing at P1.73 billion.
In spite of this asset reduction, HSBC has climbed up the ranks among universal and commercial banks in the country. As of June end, it held the 14th spot with an asset base of P217.33 billion, a notable rise from the 15th position last year. According to InvestingPro data, HSBC's market capitalization stands at 154990.29M USD, with a P/E ratio of 6.64, and impressive revenue growth of 28.13% in the last twelve months (LTM2023.Q2). This is a testament to HSBC's strong financial performance and resilience.
The consolidation aims to fuel growth in its retail banking customer base and concentrate on commercial and global banking. As part of this strategy, HSBC merged its retail banking operations and centralized investment and insurance needs through HSBC Wealth Inc., backed by a $6 million investment in HSBC Investment and Insurance Brokerage Philippines Inc. InvestingPro Tips highlights that HSBC's revenue growth has been accelerating and the company has consistently increased its earnings per share, making it a prominent player in the Banks industry.
HSBC Savings Bank, a thrift bank subsidiary of the HSBC Group in the Philippines, ceased operations as part of this restructuring. Deputy Governor Chuchi G. Fonacier announced this under Resolution No. 1274. New accounts for thrift arm clients were opened at the rebranded Alabang, Muntinlupa City branch while branches in San Juan City and Makati City were closed.
Simultaneously, HSBC continues to expand and upgrade branches across the Philippines, reflecting its ongoing commitment to strengthen its presence in the country. The bank's strong earnings have allowed it to continue dividend payments, as highlighted in InvestingPro Tips, with a dividend yield of 5.3% and a dividend growth of 70.2% in the last twelve months (LTM2023.Q2). For more insights, readers can explore InvestingPro, which offers a wealth of additional tips and real-time metrics.
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