In the first half, the bank reported total income from its wealth management division rise to HK$5.33bn ($679.07m) from HK$4.66bn the year before. The business sells retail investment funds, securities and insurance products.
The bank attributed the growth to the use of data analytics in customer segmentation and the distribution of an “all-weather product portfolio” under volatile market conditions.
“Enhanced data analytics and more effective customer engagement across our diversified distribution channels improved our understanding of the preferences of our clients,” Louisa Cheng, vice chairman and chief executive said in the statement.
She said the analytics promote tailored financial management solutions and accommodates changing customer needs.
Year-on-year growth in fund sales was 17.7%, generating HK$1.06bn in fee income for the first half. Funds remain the major contributor to the investment services income for its wealth management sales division.
In Hong Kong, the number of Hang Seng high-net-worth clients expanded by 26% year-on-year, the bank said, but did not provide details.
HSBC parent
Hang Seng’s parent HSBC also announced half-year financial results today.
The net operating income of its global wealth management business rose by 3.1% to $3.38bn during the first half, driven by higher distribution revenue from investment products. They include mutual funds, structured products and securities trading, as well as insurance products, both managed by HSBC and third-party institutions.
The bank said increased investor confidence, notably in Hong Kong, has raised the revenue from sales of mutual funds and retail securities.
Globally, on the asset management side, funds under management at HSBC Global Asset Management was down 1.3% to $456bn in the first half.
But the bank did not give a breakdown of Asia results for its asset and wealth management business.
Officials did say that HSBC’s total global revenues for the first half of 2018 were $27.3bn, with half derived from Asia.
In June, the bank revealed plans to expand its wealth management division in China. HSBC said it wanted to grow its global wealth revenues to $6bn by 2020 from $5.1bn in 2017. HSBC’s wealth businesses in Asia includes its private bank, retail bank wealth, insurance and asset management.
