HSBC is to start offering wealth management products to retail customers in Japan, targeting high-income customers through the internet to o...

HSBC is to start offering wealth management products to retail customers in Japan, targeting high-income customers through the internet to overcome the lack of a branch network, according to Michael Smith, chief executive officer of HSBC's Asian operations. “We have now decided the market is right to expand with our wealth management model in Japan,” Mr Smith said. “Growth in retail wealth is now about right. Local banks have a huge franchise and are very successful, we won't compete head on.” HSBC has one branch in Tokyo and another in Osaka, both offering private banking. It only employs 650 people in Japan out of 90,000 in Asia, and 284,000 around the world. Net income from Japan was $25 million in the six months to the end of June, up from a $7 million loss in the first half of 2005.