HSBC Holdings opened its first retail branch in Russia targeting the high end of the retail market. Stuart Lawson, CEO of HSBC Russia, revealed that the Europe’s biggest bank intends to start three more braches in Russia within a month.
According to the Russian government statistics office, the average monthly salary in the nation was 19,000 rubles at the end of 2008. HSBC is planning to attract clients who can deposit at least 75,000 roubles.
Mr. Lawson said: “There is no doubt that last year was bumpy, but I’d also say the middle class here had a fairly low exposure in the stock market and therefore is relatively undamaged. We feel that there is plenty of space out there for us to grow into. Our intention in the Russian market is to grow organically and this is the first stage in this growth.”
“HSBC invested approximately $200 million in its Russian division in September 2008 amid a record stock-market fall because of the collapse of Lehman Brothers. That investment tripled HSBC Russia’s capital and vindicated the bank’s long-term commitment towards Russia,” he added.
