Credit Suisse is acquiring HSBC’s private banking business in Japan, only two years after the launch its onshore private banking business. The acquisition, which is subject to regulatory approval, is expected to close in mid-2012.
The value of the gross assets of the business being sold was $2.7b as of October 31, 2011 according to HSBC, but it did not disclose the sale price.
Credit Suisse said it plans to expand client coverage through the integration of new offices in Osaka and Nagoya and aims to boost profitability. Currently the Swiss bank has an office in Tokyo.
“This acquisition is a demonstration of our commitment to build a leading private banking business in Japan, acquire assets, and drive profitability,” said Junya Tani, head of private banking for Credit Suisse in Japan.
HSBC said the sale is part of its strategy outlined at the Investor Day in May 2011. The bank’s chief executive, Stuart Gulliver, wants to cut annual costs by $3.5 billion and sharpen the bank’s focus on Asia by quitting countries or businesses where it lacks scale.