HSBC looks to grow in Ireland

THE head of the Irish operation of global banking giant HSBC has claimed the group is committed to this market and is looking to grow here, despite overall group profits falling by 18% to $19.9 billion (€15.8bn) for 2008.

HSBC issued its latest set of annual results yesterday. As well as the profit decline, they detailed a 45% rise in annual impairment charges — funds put aside to cover bad debts — to $25bn.

However, according to Simon Wainwright, HSBC’s chief executive in Ireland, the Irish operation suffered no bad debts last year and is well placed for further growth, particularly across its hedge fund division.

Mr Wainwright told the Irish Examiner yesterday, that HSBC remained “very committed to the Irish market“, in which it has had a presence for the past three decades. The group currently employs more than 500 people across its private banking, corporate banking, hedge fund administration and re-insurance divisions.

He said, while 10 people were made redundant last year, no plans are currently afoot for any further job losses. Mr Wainwright also suggested there could be some consolidation within the wider group that could be made “to the advantage of the Irish operations.” It was too early to say what that benefit could be, but it could result in the transfer of some hedge fund activity to the Irish operation — HSBCs biggest international fund administration office.

Meanwhile, a spokesperson for the troubled US insurance giant, AIG, yesterday moved quickly to suggest that the company’s Irish operations are safe.

The group yesterday reported a $61.7bn loss for the fourth quarter of last year, which was the largest quarterly loss in American corporate history and prompted the US Government to pump another $30bn into saving the company.

The spokesperson for the group’s Irish operations said: “AIG Ireland is financially strong and is trading well. Today’s announcement has no impact on the Irish operation which is ‘ring-fenced’ from the global parent and its assets and liabilities are its own. The Irish solvency level is more than four times what is required and the company had higher business retention levels than ever at the end of 2008.”