HSBC halting wealth management business in Jordan, Bahrain and Lebanon

HSBC Holdings is halting its wealth management division in Bahrain, Jordan and Lebanon as it continues to exit small or insufficiently profitable global operations. This recent move follows a global initiative to increase profitability by scaling back on private banking and Islamic banking operations in the Middle East.

“After a detailed review of our MENA business, we will discontinue sales of any new wealth investment or wealth insurance products in Lebanon, Jordan and Bahrain from October 7, 2013″ the bank said. Existing customers will continue to receive basic services and their wealth management-related investments will be maintained until maturity.

According to a study by the Boston Consulting Group, wealthy Middle Eastern and African private banking clients saw an increase in the value of their assets of 9.1% to  $4.8 trillion as MENA region economies have fuelled equity growth. However, profit margins have shrunk in the last few years as the private banking industry has become flooded with over 30 institutions vying for clients.


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