HSBC reveals it is to close Dublin-based division

HSBC has decided to close its private bank and wealth management division in Ireland.

A spokesperson says no other divisions of HSBC’s Ireland operations will be affected by the closure.

A statement made to the Irish Examiner, said: “HSBC Private Bank has confirmed its intention to close its office based in Dublin. HSBC last year announced a strategic review of its global business including its wealth management operations; this decision is a direct result of the continuing five filter portfolio review. HSBC Private Bank Ireland will cease to undertake new business with immediate effect.”

It also said the bank would “continue to work with existing customers to provide services in line with contractual obligations until closure and will work closely with them to minimise disruption”.

“The company has entered into consultations with the staff it employs in Dublin,” it said.

“The company has also entered into consultations with the Central Bank of Ireland and the FSA.”

It is not know how much assets HSBC’s private bank in Ireland had under management.

The division was headed by Rory Quinlan and employed six people. The bank did not say if there would be redundancies.

HSBC employs more than 400 people in Ireland in its corporate finance and funds management business.

A HSBC spokesperson says the decision to close down private banking will have no effect on the its other Irish operations.

HSBC’s private bank in Ireland provided services in investments, deposits, lending and specialist services in the areas of Media and &Sport, Hedge Fund Advisory and Insurance Brokerage.

One fund manager with knowledge of the private banking and wealth management business says the HSBC decision is most likely a reflection of head office’s view of Ireland’s potential in the future.

The fund manager said HSBC has a presence in a number of high growth markets and will look to concentrate is focus and resources in these countries.

HSBC’s announcement comes on the heels of recent consolidation in the financial services sector. Bloxham Stockbrokers was closed by the Central Bank when it emerged the firm had breached a number of regulations.

Insurance firms Axa and Danica have closed asset management divisions in Ireland.

There is intense competition among providers of private banking and wealth management services in Ireland, particularly with the banks offering high interest rates on money on deposit. The fund manager predicts there will be further attrition in the market, including more high-profile names.