HSBC Private Bank has High Hopes for Its Brazil Expansion - Report

Tom Burroughes

18 June 2008

UK-listed banking giant HSBC said it expected its private banking operations in Brazil to increase assets under management by more than 50 per cent this year, according to Bloomberg.

"There are more global investors willing to buy Brazilian assets," HSBC Brazil's head for investment banking, Helena McDonnell, said in an interview. " Brazil has never been in the sights of investors like it is now.''

Brazilian banks and foreign institutions operating in the country are expanding their private banking services as faster economic growth in Latin America's largest economy and appreciation of the Brazilian currency have increased demand for the country's assets.

More investors from the Middle East, Germany and Japan are looking for opportunities in Brazil “either in the financial markets or in direct investment,” McDonnell said. HSBC's private bank business has $498 billion in assets under management globally.

HSBC plans to increase its 74-member private banking staff by 15 per cent this year, Ms McDonnell said.