KPMG – Hong Kong Banking Report, 2024

The 2024 edition of the Hong Kong Banking Outlook by KPMG discusses the mixed fortunes experienced by the banking sector and the city in 2023. Despite the removal of Covid-related restrictions in Hong Kong and China, there was no anticipated rebound in economic activity, and cautious sentiment persists in both regions. Geopolitical tensions also continue to impact Hong Kong. Although the report predicts that Hong Kong's banks may not see significant growth in 2024, there will still be some opportunities amidst a changing landscape. The global economy is expected to gain stability as inflation is brought under control in many jurisdictions. However, corporate credit will remain challenged, particularly due to credit stresses related to Chinese real estate and other sectors. The report emphasizes the importance for banks to focus on improving operational efficiency and managing risks in a situation where growth is difficult to find. It also highlights the need to protect against consumer fraud, prepare for climate risk, and stay updated on tax and regulatory developments. Cross-border connectivity is expected to improve, with initiatives like the Wealth Management Connect opening new markets and expanding the potential customer base. KPMG acknowledges that views within the organization may vary when discussing unpredictable topics, and they will closely observe market developments in the coming year. Readers are encouraged to reach out to the KPMG team for further discussions on the report's topics.