Best Private Bank Credit Advisory
HSBC Global Private Banking
Best Private Bank — Credit Advisory
Jyrki Rauhio
Regional Head of Credit Advisory, Asia Pacific, HSBC Global Private Banking
“We are honoured to be named Best Private Bank – Credit Advisory by Asian Private Banker for the second consecutive year, as we continue to strengthen and expand our credit advisory platform with more exclusive, best-in-class and tailored solution that best fit our clients’ needs.
Our credit advisory business has gone from strength to strength with continuous investment into people, we have expanded the team in particular building out our structured lending capabilities to provide bespoke and structured lending products to clients in view of the increasingly complex financial situations they are facing.
In addition, the credit advisory team in Asia has been managing a robust Lombard credit business, with over 7,000 lines of credit made available to majority of our private banking clients to facilitate daily leveraged investment activities last year. We are thankful to our valued clients for their ongoing trust.”
Winners rationale
Throughout 2021, HSBC Global Private Banking (HSBC GPB) made several critical enhancements to its credit advisory platform in the region that boosted its client proposition, ensured sound risk management and attracted strong net interest income in an era of ultra-low rates.
The private bank significantly increased its focus on customised lending solutions relative to the more traditional Lombard loan business during the period under consideration, ranging from single stock financing, to aircraft and single hedge fund financing.
Within the customised lending business, HSBC GPB enriched its capabilities to provide financing against single, illiquid stocks and larger transaction sizes, and it bolstered credit offerings to tap the emerging HNW segment of hedge fund founders and private equity general partners.
Landmark deals delivered by HSBC’s team of 21 dedicated credit advisors and 10 credit specialists included US$200 million in single-share financing and US$70 million in pre-delivery financing for a yacht, both in Hong Kong.
During the year, HSBC GPB managed more than 7,000 credit facilities out of its Hong Kong and Singapore offices, maintaining a high rate of penetration among the bank’s clients.
HSBC GPB made extensive efforts to manage risks across its credit portfolio in the region during a year of volatility in markets, including Chinese technology stocks and high-yield bonds. The credit team closely monitored all client relationships on a daily basis, particularly those with high leverage to pinpoint those with a tight margin situation and encourage an early top-up. As a result, HSBC GPB endured no credit loss cases during the period under consideration.
The bank focused on the development of several new propositions that could bear fruit for the credit business in the future, including cross-border property financing, new stock exchanges whose securities will be eligible for Lombard loans, and automation tools to flag portfolio concentration risk.
HSBC Global Private Banking is Asian Private Banker’s Best Private Bank – Credit Advisory for 2021.
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