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Bank takeovers expensive says HSBC CEO
By siliconindia
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Wednesday, 13 September 2006, 19:30 IST
ST. LOUIS: Considering the current prices, bank acquisitions are too costly, Bobby Mehta, CEO of HSBC Holdings Plcs North American operations said. But the company had gained nearly $6 billion in deposits in less than a year from its Internet business.
The head said his company is unperturbed to expand its bank operations by opening new branches and magnetizing new accounts via the Internet.
During a web cast sponsored by Lehman Brothers, Mehta said, We really don't see bank acquisitions at these uneconomical valuations.
HSBC Holdings is the world's third-biggest bank and makes about one-third of its pretax income in North America. Pretax income at HSBC North America rose by nearly 13 percent to $3.7 billion in the first half of this year, Mehta said.
HSBC Direct, the banks online business has secured nearly $6 billion in deposits since its launch. Fresh accounts on-line total about 275,000, he said.
HSBC North America will open more branches in New Jersey, Connecticut, Washington D.C. and Miami, Mehta said.