HSBC plans to open nine more branches in RI
HSBC plans to open nine more branches in RI
JAKARTA (JP): The Hongkong and Shanghai Banking Corporation
Limited (HSBC) will open nine more branches in major Indonesian
cities by the end of next year to further boost its growing
network in the country.
HSBC Indonesia deputy chief executive officer Alastair J.
Bryce said in Jakarta on Friday that the expansion was part of
the bank's global strategy to further develop its retail market.
"The new branches that we're opening will concentrate on
personal business," he told The Jakarta Post following the
signing of a cooperation agreement with PT Nikko Securities
Indonesia.
He said the rapid expansion of HSBC's branches were a sign of
confidence in the future of the Indonesian market.
Last month, he said, the bank opened one branch in the Puri
Indah mall in West Jakarta. Two more branches at Taman Anggrek
mall in West Jakarta and Plaza Senayan in Central Jakarta will
follow within a week, he added.
In its media statement, HSBC said the new branches could serve
customers seven days a week, thus making the bank the only
foreign bank to open on Saturday and Sunday.
Bryce declined to say how much the bank had invested or
planned to invest for its expansion plans.
However, he said the new branches were not large, with each
employing eight to 12 staff members.
Outside Jakarta, HSBC has branches in Bandung, Semarang,
Surabaya, Medan and Batam, he said.
"We'll be expanding our business across all parts of
activities, so we're certainly not looking at doing anything
less," Bryce said.
HSBC Indonesia is the foreign institution with the largest
local network. It has three branches in Jakarta and five others
in Surabaya, Medan, Bandung, Semarang and Batam.
Bryce said nine new branches would also be opening in Jakarta
and the five cities.
He said the bank's lending in Indonesia had expanded
significantly this year and most of the loans were extended to
retail consumers.
"We're a global bank and we're looking to serve our
multinational clients in other parts of the world," he explained.
Bryce said the surge in its retail market was part of the
bank's global strategy to increase its business.
"That means a whole new range of personal financial services
to our consumer banking customers," he said.
As for Indonesia, he said, the retail banking growth was more
liability led, since HSBC focused thus far only on credit cards.
"We hope in the early part of next year to develop some loan
products other than credit cards," he said.
Concerning Indonesia's banking sector, he said challenges were
felt in the uncertainty of the currency and the interest rates.
"When we talk to most of our corporate clients, they say the
main thing is the continuing uncertainty on the currency side,"
he said.
He estimated that the banking sector next year would recover
slowly, due to the uncertain political condition.
"If anything happens in the economy, whether its foreign
direct investment, it's all going to be driven by developments on
the political front; and that situation is still quite volatile,"
he said.
But amid the uncertainty, he said he saw a sufficient amount
of stability in the market to allow the economy to grow. (bkm)