HSBC looks to corporate banking expansion

HSBC is looking to capitalise on the fall out from Scotland's two largest banks by expanding its corporate banking presence north of the border.

HBOS/Lloyds is cutting around 300 corporate banking posts in Scotland and RBS has reported bad debts in this division, which means it's likely to either hold off hiring or include this sector in its swingeing redundancy announcements.

However, HSBC - which yesterday appointed a new chief executive John Rendall - is making a challenge to the big players north of the border.

"We are very pleased with how the parts of our business have been developing in Scotland over the past few years, especially in the corporate banking sector. We have got bigger plans for Scotland - you might call them ambitious plans," said Randall.

The bank wouldn't be drawn on how many jobs are likely to be created. However, it's another glimmer of hope for a sector seemingly bereft of opportunities recently.

Last week, Tesco Personal Finance, which has been rapidly expanding in Edinburgh, said it was considering moving into corporate banking

HSBC increased corporate lending in Scotland by 46% in the four months to the end of April, compared with the same period in 2008.