HSBC to cut over 1,000 wealthy Middle East clients: reports
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The news: HSBC’s Swiss private bank is ending relationships with more than 1,000 wealthy Middle Eastern clients, including many with assets exceeding USD100 million, amid ongoing scrutiny from Swiss regulator Finma.
According to Bloomberg, clients from Saudi Arabia, Qatar, Lebanon and Egypt are being told they will no longer be able to bank with HSBC. They will receive letters in the coming months advising them to move their accounts elsewhere, the publication reported, citing people familiar with the matter.
The context: The move comes after Finma found the bank breached anti-money laundering legislation and barred it in 2024 from starting new relationships with politically exposed persons.
What they said: HSBC said the decision is part of plans to reshape the Group and evolve the strategic focus of its Swiss private bank.
Barry O’Byrne, chief executive of HSBC’s International Wealth and Premier Banking unit, told The Financial Times the bank had an “absolute commitment to both our Middle East and Swiss Wealth businesses”.
He added: “Switzerland plays a key role in how we support clients globally — it’s one of our core wealth hubs. Our strategy is to significantly grow our Wealth business and we have been doing so successfully. This strategy will see continued investment in both our Middle East and Swiss businesses to deliver best in class service to our customers.”
The bank did not address the specific number of client exits, which was first reported by Bloomberg.
The sources: Bloomberg, The Financial Times
