HSBC Holdings Plc, Europe’s largest bank by market value, hired Philipp Lederer of Morgan Stanley as the firm expands its strategic advisory business for financial companies.
The bank, based in London, named Lederer a managing director for the financial institutions group in September, a spokesman for the company said today.
HSBC, which survived the financial crisis without a government bailout, is adding people to tap demand from banks, insurers and asset managers for capital-markets and mergers advice. HSBC has hired about a dozen investment bankers globally this year for the financial institutions group from firms including Goldman Sachs Group Inc. and Deutsche Bank AG.
Financial companies in Europe have raised more than $100 billion this year in share sales, including rights issues and initial offerings, according to data compiled by Bloomberg. That’s more than double what they sold in the same period in 2012, the data show. Banks have been bolstering capital levels and cutting debt by selling shares and assets to meet stricter regulatory requirements introduced after the financial crisis.
“We have been taking advantage of HSBC’s relative strength and have specifically targeted financial institutions as a growth area,” including mergers and all forms of capital raising, said Giles Harrison, global co-head of the financial institutions group. “We’ve gained market share and have hired a meaningful number of bankers over the past 12 months.”
One-fifth of the world’s biggest banks may be broken up or sold as part of a “radical course correction” to boost shareholder returns, according to McKinsey & Co. report published last week.
HSBC helped advise a group headed by private-equity firms Corsair Capital LLC and Centerbridge Partners LP that agreed in September to invest in a planned initial public offering of 314 branches owned by Royal Bank of Scotland Group Plc. HSBC also worked on Commerzbank AG’s 2.5 billion-euro ($3.4 billion) capital increase in May.