By Yifan Wang

HSBC Holdings PLC plans to acquire AXA Singapore for $575 million, as the Asia-focused bank steps up efforts to expand its wealth-management business in the region.

The lender's insurance unit, HSBC Insurance (Asia-Pacific) Holdings Ltd., would take the entire stake in the Singapore company with existing resources, HSBC said Monday.

The proposed deal, subject to regulatory approval, is a key step in HSBC achieving its stated ambition of becoming a leading wealth manager in Asia by 2025.

HSBC's wealth-management focus comes as banks increasingly look to other income growth drivers as their loan operations remain under pressure amid low interest rates globally.

Once the acquisition is complete, HSBC said it plans to merge AXA Singapore's operations with its life-insurance business in the city-state, a major hub for wealth businesses in Southeast Asia.

Write to Yifan Wang at yifan.wang@wsj.com

(END) Dow Jones Newswires

August 16, 2021 01:00 ET (05:00 GMT)

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