HSBC has posted a 28 per cent rise in overall profits in the third quarter, as wealth management income picked up for the firm.
The bank said this morning that its wealth management division had been boosted by “increased investor confidence in the equity markets, higher mutual fund distribution and higher wealth insurance distribution.”
It added: “In wealth management, higher investment distribution revenue, reflecting increased investor confidence, more than offset lower life insurance manufacturing revenue, which included a net adverse movement in market impacts.”
The wealth management division’s profits were up 3 per cent to $100m (£78m) year on year over the nine months to date, despite “investments in digital capabilities and investments to grow the business.”
HSBC has been mulling a robo-advice style service since as far back as 2016.
It confirmed in June 2017 it was launching a “new personalised online advice service which will make wealth management advice available at a fraction of the cost to those with a small amount to invest.”
It said it was expected to launch this by the end of 2017, but failed to do so.
However, HSBC in the US last week announced it was partnering with platform Marstone to develop a pilot of a low-cost investment advice platform.