HSBC has launched a comprehensive strategic review of its insurance operations in Singapore, which collectively manage over USD 30 billion in assets under management. The bank’s global simplification plan, announced in late 2023, targets a 15% reduction in non-core businesses by end-2025. Key considerations include potential full or partial divestment of life and general insurance units, partnerships with regional insurers or the sale of proprietary distribution networks. Management has set a mid-2024 deadline for final recommendations, with cost synergies of up to USD 100 million annually expected if these Singapore operations are consolidated or sold. HSBC executives indicated that reinvestment of proceeds will prioritize its core wholesale banking franchise and digital wealth platforms in Asia-Pacific.

In a recent appearance on the “Money Movers” podcast, Max Kettner, HSBC’s chief multi-asset strategist, described the bank’s stance on global equities as “almost maximum bullish”, with particular conviction in U.S. large caps. Kettner highlighted that U.S. earnings revisions have outpaced those in Europe and emerging markets by 25% over the past quarter, driven by robust consumer spending and resilient corporate profit margins. He forecasts the S&P 500 mid-cycle valuation multiple to expand by 1.5 turns over the next 12 months, underpinned by potential interest rate cuts in the second half of 2024. Kettner also cited a shift in global bond yields as supportive, noting that the 10-year U.S. Treasury yield’s recent stabilization around 3.8% reduces the opportunity cost of holding equities.