Credit Suisse has completed its acquisition of HSBC’s private banking business in Japan, becoming one of relatively few non-domestic banks to take a serious tilt at a market dominated by local players.

The purchase of the business was part of a strategy outlined by HSBC over a year ago in which that bank said it wanted to cut costs and sharpen the bank's focus on Asia by quitting countries or businesses where it lacks scale. HSBC’s gross assets in Japan were reportedly $2.7 billion at the end of October 2010. The purchase price was undisclosed.

Japan’s market has been a difficult one for foreign banks to penetrate. Back in 2004, Citi’s private bank was forced to quit the country over financial shortcomings, for example.  

Credit Suisse issued an upbeat note accompanying its announcement that the HSBC deal was complete.

“This acquisition enables Credit Suisse to further scale and enhance its wealth management capabilities in Japan and clients will be able to benefit from the expanded coverage provided through additional offices in Osaka and Nagoya,” it said.

“This acquisition demonstrates our commitment to building a leading private banking business in Japan and in dedicating the appropriate investment and resources to ensure the long-term success of our regional private banking franchise in Asia,” said Francesco de Ferrari, head of private banking for Asia-Pacific at Credit Suisse.

HSBC's moves to slim down operations continues. Turkish lender Isbank is reportedly considering buying HSBC's branches in Pakistan, Isbank deputy chief executive Erdal Aral has told Reuters.  An HSBC spokesperson later told WealthBriefingAsia (sister publication to WealthBriefing):
"HSBC is in early stage discussions regarding the possible sale of its
operation in Pakistan. Further announcements will be made if or when
necessary."