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AMBD says HSBC move not due to Brunei economy


Customers waiting to be served yesterday at the HSBC headquarters in Bandar Seri Begawan. The Autoriti Monetari Brunei Darussalam (AMBD) said HSBC’s winding down of its Brunei operations is part of a global strategy and not due to the sultanate’s economic environment. The central bank said the bank recorded a double-digit growth in profits last year to $28.7 million from $25.7 million the previous year. BT



BY LEO KASIM

BANDAR SERI BEGAWAN - THE Autoriti Monetari Brunei Darussalam (AMBD) said HSBC’s winding down of its Brunei operations is part of a global strategy and not due to the sultanate’s economic environment.

In a statement released yesterday, the central bank said the bank recorded a double-digit growth in profits last year. AMBD said HSBC Brunei’s financial performance remains robust and satisfactory with an 11.4 per cent increase in profit to $28.7 million in 2015 from $25.7 million the previous year.

The bank’s decision was due to its focus on business in fewer markets, AMBD said.

“HSBC’s decision was part of its global strategy to focus on core business and not due to the economic environment in Brunei.”

AMBD added that the banking giant has closed or wind down its businesses in 83 countries including the sale of its business operations in Brazil last year.

The central bank said it’s working closely with HSBC Brunei to ensure minimal disruption to customers, staff, the financial industry and national economy.

HSBC Brunei’s customers may contact 2252252 or visit their respective branches for more information.

In a statement issued Tuesday, HSBC said it is winding down operations in the sultanate after 69 years and will no longer take on any new accounts, facilities or business from today onwards.

“Following a strategic review, HSBC will be winding down its operations in Brunei, which comprise retail, commercial and global banking services,” HSBC said.

The bank said the move is in line with its strategy to “optimise its global network and reduce complexity, outlined during the HSBC Investor Update on June 9, 2015”.

In a February 2016 report, AFP said the net profit for the London-based lender dropped by 1.2 per cent to US$13.52 billion in 2015 from the previous year while pre-tax profit of US$18.9 billion missed analysts’ forecast of US$21.8 billion.

-- Courtesy of The Brunei Times

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