Revamping HSBC Sells Thai Banking Assets

[webfact]

Revamping HSBC sells Thai banking assets

BANGKOK, January 26, 2012 (AFP) - Europe's biggest bank HSBC said Wednesday that it was selling its retail banking and wealth management business in Thailand to Bank of Ayudhya, the latest in a series of asset sales.

London-headquartered HSBC did not divulge the price tag but said the gross asset value of the business was about $550 million. The deal is expected to be completed sometime in the first half of this year.

In recent weeks HSBC has also sold its private banking business in Japan and its operations in Costa Rica, El Salvador and Honduras as part of broader restructuring to reduce costs and focus on growth.

The Asia-focused bank last year announced massive cost-cutting measures, including plans to save up to $3.5 billion by 2013 and to axe 30,000 jobs globally.

-- (c) Copyright AFP 2012-01-26

[HarryWho]

Isn't this the same bank that Thai Visa has been pushing as the best bank for expats?? Oops.

[kotsak]

So what happens to their Premier customers and their credit cards?

[rogerman]

They Bank of Ayutthaya customers now..... Not a bad bank anyway

[chainarong]

Shouldn't worry, you can always change banks, if you can put up with the red tape, what concerns me is why is HSBC getting out of Thai, for a world bank and the large industrial base of Thailand, doesn't make sense.

[anterian]

one of the directors is called Daniel? Understands the writing on the wall? [Daniel 5]

[w11guy]

Shouldn't worry, you can always change banks, if you can put up with the red tape, what concerns me is why is HSBC getting out of Thai, for a world bank and the large industrial base of Thailand, doesn't make sense.

Especially true when you consider that the article says it's an Asia-focused bank. Possibly the business climate in Thailand is not good enough for them to make enough money. Perhaps they will get a better return on investment elsewhere. e.g. China.

[chiang mai]

Banks that own lots of retail accounts amass a lot of liabilities unless they can sell a coresponding volume of credit card and personal loans, perhaps the competition in Thailand is too fierce HSBC, after all they only have one branch.

[nong38]

They Bank of Ayutthaya customers now..... Not a bad bank anyway

If you mean Bank of Ayudhya I totally agree with you, give me good service every visit.

[Estrada]

The deal is not yet approved by the shareholders. An extraordinary general meeting (EGM) has been called to be held on 20th March 2012. News is sketchy and confusing as the press report that it only affects its premier, credit card and personal loan business, yet the news also refers to selling HSBC's retail banking business which by inference would include personal and savings accounts. Personally I am not happy with the deal unless we can get exactly the same standard of service or better. Although I have an account with Bangkok Bank, I opened an account with HSBC because BBL took 45 days to clear my pension cheques against HSBC's 19 days. I can get a letter from HSBC for immigration stating B800,000 in my account without problem on the day of my visit to immigration to renew my visa, BBL give me hassle if I request a letter as I have to go to head office and apply then return later. HSBC accept applications for the letter for immigration by e-mail. Much better.

Anyone have any better information?

[w11guy]

The deal is not yet approved by the shareholders. An extraordinary general meeting (EGM) has been called to be held on 20th March 2012. News is sketchy and confusing as the press report that it only affects its premier, credit card and personal loan business, yet the news also refers to selling HSBC's retail banking business which by inference would include personal and savings accounts. Personally I am not happy with the deal unless we can get exactly the same standard of service or better. Although I have an account with Bangkok Bank, I opened an account with HSBC because BBL took 45 days to clear my pension cheques against HSBC's 19 days. I can get a letter from HSBC for immigration stating B800,000 in my account without problem on the day of my visit to immigration to renew my visa, BBL give me hassle if I request a letter as I have to go to head office and apply then return later. HSBC accept applications for the letter for immigration by e-mail. Much better.

Anyone have any better information?

Interesting. I'm with Bangkok Bank and need to get a letter for immigration next month. Luckily I live near the head office.

[pimay11]

The deal is not yet approved by the shareholders. An extraordinary general meeting (EGM) has been called to be held on 20th March 2012. News is sketchy and confusing as the press report that it only affects its premier, credit card and personal loan business, yet the news also refers to selling HSBC's retail banking business which by inference would include personal and savings accounts. Personally I am not happy with the deal unless we can get exactly the same standard of service or better. Although I have an account with Bangkok Bank, I opened an account with HSBC because BBL took 45 days to clear my pension cheques against HSBC's 19 days. I can get a letter from HSBC for immigration stating B800,000 in my account without problem on the day of my visit to immigration to renew my visa, BBL give me hassle if I request a letter as I have to go to head office and apply then return later. HSBC accept applications for the letter for immigration by e-mail. Much better.

Anyone have any better information?

Speaking about BBL they say the charge for using their ATM for foreign withdrawls is 150 baht. Not ture. They also charge a foreign transaction fee based on the amount of the withdrawal. If you doubt it check your foreign bank statement.

Edited January 26, 2012 by pimay11

[sparebox2]

They Bank of Ayutthaya customers now..... Not a bad bank anyway

If you mean Bank of Ayudhya I totally agree with you, give me good service every visit.

One day, Bank of Ayudhya could take over HSBC.

They last took over GE Capitial and Jardine Fleming; or was it the other way round?

Edited January 26, 2012 by sparebox2

[w11guy]

The deal is not yet approved by the shareholders. An extraordinary general meeting (EGM) has been called to be held on 20th March 2012. News is sketchy and confusing as the press report that it only affects its premier, credit card and personal loan business, yet the news also refers to selling HSBC's retail banking business which by inference would include personal and savings accounts. Personally I am not happy with the deal unless we can get exactly the same standard of service or better. Although I have an account with Bangkok Bank, I opened an account with HSBC because BBL took 45 days to clear my pension cheques against HSBC's 19 days. I can get a letter from HSBC for immigration stating B800,000 in my account without problem on the day of my visit to immigration to renew my visa, BBL give me hassle if I request a letter as I have to go to head office and apply then return later. HSBC accept applications for the letter for immigration by e-mail. Much better.

Anyone have any better information?

Speaking about BBL they say the charge for using their ATM for foreign withdrawls is 150 baht. Not ture. They also charge a foreign transaction fee based on the amount of the withdrawal. If you doubt it check your foreign bank statement.

Open a bank account with Bangkok Bank and transfer money into it. You can then withdraw it without charges. Much better than paying to withdraw money from outside Thailand.

[grahamhc]

Isn't this the same bank that Thai Visa has been pushing as the best bank for expats?? Oops.

This is why I do not buy products pushed on web forums, promoted purely for the commision that they gain from the sale.

Especially true when you consider that the article says it's an Asia-focused bank. Possibly the business climate in Thailand is not good enough for them to make enough money. Perhaps they will get a better return on investment elsewhere. e.g. China.

e.g. China: Most people forget that HSBC stood for "Hong Kong and Shanghai Banking Company" (or Corporation) and was based in Hong Kong until HK was handed back to China many years ago, when HSBC shortened their name and relocated to The City (London banking area), where they already had a large banking presence due to the money markets.

[hughden]

There has been zero communication from HSBC Thailand to their customers about this potential sale.

[wordchild]

They Bank of Ayutthaya customers now..... Not a bad bank anyway

If you mean Bank of Ayudhya I totally agree with you, give me good service every visit.

One day, Bank of Ayudhya could take over HSBC.

They last took over GE Capitial and Jardine Fleming; or was it the other way round?

they certainly didnt take over Jardine Fleming , that was JP Morgan.

[chiang mai]

They Bank of Ayutthaya customers now..... Not a bad bank anyway

If you mean Bank of Ayudhya I totally agree with you, give me good service every visit.

One day, Bank of Ayudhya could take over HSBC.

They last took over GE Capitial and Jardine Fleming; or was it the other way round?

I wouldn't hold my breath whilst waiting for the HSBC takeover by B of Ayudhya if I were you! Also, they only took over GE capital because GE itself is a major shareholder in B of Ayudhya.

[chainarong]

Shouldn't worry, you can always change banks, if you can put up with the red tape, what concerns me is why is HSBC getting out of Thai, for a world bank and the large industrial base of Thailand, doesn't make sense.

Especially true when you consider that the article says it's an Asia-focused bank. Possibly the business climate in Thailand is not good enough for them to make enough money. Perhaps they will get a better return on investment elsewhere. e.g. China.

Yeah, bit puzzling, considering they are a bank for business, very big business, I think you might be right about the climate, If so, that's not good news for Thailand

[David Barker]

They Bank of Ayutthaya customers now..... Not a bad bank anyway

If you mean Bank of Ayudhya I totally agree with you, give me good service every visit.

One day, Bank of Ayudhya could take over HSBC.

They last took over GE Capitial and Jardine Fleming; or was it the other way round?

I wouldn't hold my breath whilst waiting for the HSBC takeover by B of Ayudhya if I were you! Also, they only took over GE capital because GE itself is a major shareholder in B of Ayudhya.

As far as I was aware they only took over the Thai operations of GE capital if you google things GE capital itself is valued at over 75 times B of Ayudhya

[chiang mai]

As far as I was aware they only took over the Thai operations of GE capital if you google things GE capital itself is valued at over 75 times B of Ayudhya

Agreed, the implications of my post, given that we're in Thailand and discussing Thailand, is that the takeover related to Thailand only!

[rotary]

I looked at HSBC years ago and their charges for services was much higher than other banks. They have always been over rated in my opinion.

[swerver]

_HSBC

_{Very little info available about what is going on.}

_{Looks more like the trick B of A (like HSBC a bank with only one office in Thailand) pulled years ago – it became a strictly Thai Business Bank, ONLY using B of A procedures and/or programs. No longer B of A Branch.}

_{Maybe they talked to Carre Four; it pulled out of Thailand because it had reached and could no longer maintain the high percentage of increasing sales. Took the money and start over again in India with a large customer (one billion plus) potential for decades to come.}

_{Today one bank is okay tomorrow it is not and it will be another bank. Banks operate with people causing their service to fluctuate.}

_{Years ago I went to BKK Bank Head Office to get a letter for immigration and was told Head Office does not issue them, go to a Branch office. Thai Farmers Bank Head Office across the road, walked in walked out with the letter, try it today as a Kbank Branch Office, place your order, and come collect it tomorrow. Now I get it from a little Branch office along Bangna Trad Hiway. Walk in, walk out.}

_{Best way to live, get as few Thais involved as possible, try to do everything you can do your self. Thais are not the nice people they were decades ago. Greed has taken a hold of them.}

[griffer]

I got this from HSBC:

"The sale has been completed and Bank of Ayudhya will take care of HSBC customers if they agree to go to Bank of Ayudhya. The services will be provided through Exclusive Banking, Bank of Ayudhya.

The HSBC Premier main branch office will be opened until 30 June 2012. We are sending more information about details of the impacts and changes to the customers. You will soon receive the information. "

I'm disappointed because I have global banking which links well through HSBC...can't believe B of A will be so simple..

[trajan]

I got this from HSBC:

"The sale has been completed and Bank of Ayudhya will take care of HSBC customers if they agree to go to Bank of Ayudhya. The services will be provided through Exclusive Banking, Bank of Ayudhya.

The HSBC Premier main branch office will be opened until 30 June 2012. We are sending more information about details of the impacts and changes to the customers. You will soon receive the information. "

I'm disappointed because I have global banking which links well through HSBC...can't believe B of A will be so simple..

kind of leery of Bank of Ayudhya Exclusive...

now that HSBC Premier is disappearing

considering Standard Chartered Priority

Citibank Citigold

UOB Privileged

anybody have any other recommendations? (other than the big local banks --Bangkok Bank, Kasikorn, TMB, SCB, KTB) which dont really provide personalized service in my experience)

[chiang mai]

HSBC TH is offering Exclusive Privellege customer status at B of A for one year, in which time the account balance must be made up to 5 mill., yawn, I'm off - but like the previous poster, this screws up my highly efficient and convenient Global View and its associated transfer facilities, oh well, nothing lasts for ever.

[djlest]

Makes perfect sense to me

HSBC in most countries in the world is a good bank with reasonable charges

however HSBC in Thailand is an absolute Joke - Probably the worst bank in Thailand and only idiot expats join because they think it will be the same standards and familiar system as back home - how wrong they are.

hsbc thai branch has ridiculous bank charges, pretty much for anything they charge you, even the atm cards you pay for.

want a credit card, sure we want 100,000 fixed deposit with zero percent interest.

got a problem, you have to fax this and fax that just to make a withdrawal or transfer!

or just drop by HSBC thailand bank and hand them in - just one problem, there is only ONE branch in the whole of Thailand!

one word. Crap!

[laocowboy2]

Shouldn't worry, you can always change banks, if you can put up with the red tape, what concerns me is why is HSBC getting out of Thai, for a world bank and the large industrial base of Thailand, doesn't make sense.

Background reason is change of top management at HSBC a year plus ago. New man was CFO before and now bean-counters rule. Out goes strategic vision and in comes cost control. The basic idea behind the premier product was that it meant that if you are Premier in one country (based on minimums for deposits/investments/loans etc) then you would automatically get the same enhanced benefits (pricing, service etc) anywhere on the HSBC network even if you had pennies in the local account. Works for me in three countries at present and was about to add Thailand but I guess that will not happen now. BAY may lose quite a few of the accounts if they were from people who only had them because of the multi-country Premier status feature.

From the HSBC point of view they are looking at all Premier/retail franchises to see (a) whether they are profitable on a stand-alone basis and/or ( whether they either have critical mass or some prospect of reaching the same. BKK obviously did not make the cut.

[george]

Have they informed customers via email yet, or only to customers who has requested info?

[chiang mai]

Have they informed customers via email yet, or only to customers who has requested info?

All my info has come either from my HSBC account manager in Bangkok or from other posts on TV, this mornings email from my act mngr looked kinda formal so I would guess others getting the same perhaps.