Barclays Expands Private Bank in Singapore from India Base
The foreign ADI license will allow Britain’s third-largest lender by market value to step up plans to provide investors with easier access to Australia. Barclays said he sees Australia as an important part of his growth plans in the region. The creation of a local branch is part of the plan to develop its Australian clientele by offering its services to more corporate and institutional clients.
“This foreign ADI license reinforces our commitment to Australia and allows us to proactively serve our clients with our global corporate and investment banking platform, further supporting their ambitions for cross-border growth,” said Jaideep. Khanna, Head of Asia-Pacific, Barclays.
Khanna is based in Bombay. India is where Barclays has the most employees outside of the UK.
The Australian news comes less than two weeks after Barclays revealed its intention to expand in Asia and in particular to strengthen its private banking activities in Singapore and investment banking in Australia.
In August, the bank said it was injecting more than $ 400 million into its operations in India to help grow its merchant and investment banking business in the country. This is Barclays’ last injection of capital into the country in the past 30 years. Barclays said the investment will help grow its investment banking, debt and private client businesses.
To strengthen its wealth management business in Singapore, Barclays recently hired senior bankers to be based in its Singapore office. In August, she appointed Evonne Tan, who has over 25 years of experience in financial services, to head Barclays Private Bank in Singapore. Subsequently, she appointed Adrian Khoo, formerly Julius Baer, responsible for strategic client coverage, and hired Jamie Huang, previously at the Bank of Singapore, as a private banker.
In recent years, Singapore has established itself as one of the world’s leading centers for wealth management.
In Deloitte’s 2021 competitive ranking of wealth management centers, Singapore comes second behind Switzerland. Deloitte cites Singapore’s strengths as being a neutral business hub, with solid experience in innovation. High net worth individuals choose Singapore to park their investments because of its sound financial regulations, rule of law, and political and economic stability. In addition, Singapore has built a strong ecosystem of capabilities to support the growth of private banking. Between 2017 and 2019, the number of family offices in Singapore quintupled.
According to a report by the Monetary Authority of Singapore, in 2020, despite the global pandemic, assets under management (AUM) in Singapore grew 17% to $ 3.5 trillion, faster than the global growth rate of 15%. In 2019, Singapore’s assets under management increased by 15.7%.
The alternative sector, which grew by 31% to reach USD 705 billion, and private equity funds and venture capital AUMs which grew by 54% to reach USD 290 million, led the growth in AUM in Singapore.
In terms of fund origination, Singapore is the preferred intermediary for international asset managers and investors in the region with 78 percent of assets under management coming from outside Singapore and 68 percent of invested assets under management. in the Asia-Pacific region. Southeast Asian countries are the main investment destinations for Singapore funds, accounting for 33% of investments.
Barclays’ decision to tap into the rapidly growing wealth management business in the Asia-Pacific region should not be surprising, as the region has some of the fastest growing economies in the world. With interest rates at record highs globally, the world’s largest banks are looking for more fee-generating avenues and expanding into promising markets. London-headquartered Barclays rivals HSBC and Standard Chartered have also stepped up their focus on Asia this year to drive growth.
Barclays cancels sweeping office closures and layoff drills carried out under its previous CEO in 2016, which affected various Asia-Pacific countries including Australia, South Korea, Taiwan, Malaysia, Indonesia, Thailand and the Philippines. In total, 1,200 jobs have been lost. Only its prime brokerage and derivatives activities have been retained in the region.
Barclays, along with its competitors, is also strengthening its presence in Asia with a view to the world’s second-largest economy, with China opening up its banking sector to foreign competition. Unlike its peers like UBS Group and Citigroup, Barclays current has only a weak presence in China and operates through a single branch and representative office.
“In China we are small, we see the potential and we want to continue to invest in a calibrated and deliberate way there,” Asia-Pacific chief Khanna told Bloomberg in an interview. “Diversifying financial services is the holy grail. It saved businesses.”
He added that Barclays in 2021-2022 is a very different business than it was before 2016. “It is much more focused now, driving better returns with more local knowledge and more self-awareness.”
“We are profitable in the region and I expect that to continue in 2022. Our focus will be constant – try to stick to the areas where we are strong. There are enough areas for us to generate returns today and that is what we are focused on. “
Barclays is “probably the only international bank of our size and stature to have a regional CEO based in India, which gives a sense of how important India is,” Khanna said.
This story was posted from an agency feed with no text editing. Only the title has been changed.
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