UK & Europe Trail Emerging Economies on Expat Finances

LONDON, September 1, 2010 -

    - Vast Majority of Expats in the UK Note a Further Deterioration in the
      Economic Climate, one in ten Actively Looking to Move Home
    - Wealth gap Continues to Widen Between the East and Mainland Europe
    - Stresses of Eurozone Woes Reflected in Expat Sentiment
    - BRIC Countries Emerging as Expat Hotspots

The UK & Europe have been revealed as some of the least favourable
locations for expat finances, according to the latest findings from HSBC Bank
International's Expat Explorer survey, the largest global survey of expats.

Expat Economics, the first report from the 2010 study, found that the UK,
Belgium, Spain, France, Germany and the Netherlands were the worst performing
locations when it came to overall wealth, with lower annual salaries, reduced
levels of disposable income and fewer expats owning luxurious items.

Now in its third year, Expat Explorer surveyed more than 4,100 expats
from over 100 countries, an increase of close to 1,000 additional respondents
on 2009 making it once again the largest global survey of its kind. Expat
Economics rankings features 25 countries in 2010, determining each location's
economic score based on three main elements:

    - Annual income in excess of US$200,000
    - Monthly disposable income in excess of US$3,000
    - A measure of defined luxuries (such as owning either a swimming pool,
      more than one property, a boat/yacht, or going on more luxurious
      holidays)

Lisa Wood, Head of Customer Propositions at HSBC Bank International, said
that it was clear the wealth gap was widening between the east and west, with
expats in emerging economies leaving their counterparts in the Eurozone
behind.

"It is clear that the economic volatility that has plagued the UK and
Eurozone has had a significant effect on expat finances since 2009," said
Lisa.

"The report has revealed that these countries were the worst performing
when looking at purely financial criteria and it was here that we found a
significant proportion of expats who had noticed a deterioration in their
respective country's economies. Not surprisingly, a number of expats in these
economies are actively looking to return home."

Expats and the economy

Almost half (47%) of all expats surveyed believed that the economy in
their current country has deteriorated since the start of 2009. Reflecting
the turmoil experienced in the Eurozone, a larger number of expats based in
Spain (93%), Belgium (60%), France (60%) and the United Kingdom (67%) also
agreed with this statement.

This was in contrast to the economies that have escaped the worst of the
economic downturn, with a smaller number of expats living in the emerging
nations of Russia (45%), India (16%) and China (9%) feeling negative about
their respective host economies.

Nearly one third (29%) of UK based expats said there have been reduced
career opportunities and 31% say they are having to monitor their expenditure
more closely - something that has become increasingly important due to the
increased cost of living that UK based expats are faced with. Over half of UK
based expats agreed that the cost of living was considerably higher than in
their home country, with bigger spending on most items except healthcare.

The wealth gap

Mainland Europe, dominates the bottom five positions on the league table.
Almost two-thirds (62%) of surveyed expats living in Spain earn below
$60,000, as do almost half of the expats living in France (47%) the
Netherlands (47%) and Germany (45%). This is much higher than the global
average of only one quarter (26%) of expats who earn less than $60,000 and
can largely be explained by the high number of expats who choose mainland
Europe as a retirement destination.

Conversely, expats in Russia remain the wealthiest in the world, with
over one-third (36%) of those surveyed earning over $250,000. Both Singapore
(32%) and Bermuda (27%) also have a much higher proportion of expats with an
annual income of over $250,000, significantly higher than the world average
of 13%.

Accumulation of debt in the UK

Overall, the report revealed that only one in twenty (5%) expats were
accumulating more debt and that expats are still saving a greater amount
whilst working abroad, with one in five (20%) able to pay off more debt than
when they lived in their home country.

Despite this, the report revealed that the UK was home to the highest
number of expats who were accumulating more debt (11%) followed by Australia
(9%), despite the fact that many expats in these countries are also able to
save more than in their home nation (53% and 51% respectively). Spain (29%)
and France (36%) have a much smaller percentage of expats saving more than in
their home nation, however this is likely to be due to the larger number of
retirees amongst this population.

"Whilst we have seen a different and somewhat negative picture in the UK
& Europe when compared to the rest of the world, it's important to remember
that expats in these countries are still managing to earn and save more that
they did in their home country," said Lisa.

"As expats tend to be more affected by economic events, it will be
interesting to see how migration patterns continue to change as the global
economy continues to undergo a period of recovery."

Follow the updates and join the debate online:

Tweet at: twitter.com/expatexplorer

Share your experiences: expatexplorer.blogspot.com/

Notes to editors:

About the Expat Explorer survey

The Expat Explorer was commissioned by HSBC Bank International and
conducted by third party research company GfK. 4,127 expats were questioned
through an online survey from 26th April 2010 to the 7th June 2010, with
expats from over 100 countries worldwide taking part - making it a unique and
the largest survey of its kind. Please note that the sampling technique used
for the 2010 survey does not claim to give a fully representative sample of
all expatriates. In addition, it differs substantially from the sampling
technique used in 2009. Therefore, comparisons of results year on year are
not statistically valid and have been made for illustrative purposes only.

A sample size of 30 or more respondents from each country was required
for inclusion in the league tables, in order to be considered robust and
indicative of the views and trends of the specific population it relates to.
The league tables are based on a series of interrelated factors (rather than
a single factor or question) to ensure a fair assessment of how individual
countries rate across the full criteria. The responses of those who responded
"not applicable" or "refuse to say" have been excluded. Each criterion is
equally weighted to arrive at a score. The overall ranking is based on the
average score for a country across the criteria.

About Expat Economics

The Expat Economics league table ranks countries in terms of three main
economic factors: a.) Income, b.) Disposable Income and c.) a measure of
Luxury. All countries with a sample size of 30 and above are included in the
economic league table. Scores from each factor is equally weighted to arrive
at an Overall 'Expat Economic' Score and Overall Rank. For further
information on the Expat Economics methodology, please refer to the Expat
Economics report available at www.offshore.hsbc.com

HSBC Bank International

HSBC Bank International is an award winning provider of offshore
financial services, with its head office based in Jersey, Channel Islands. It
also has representation in the Isle of Man, Dubai, Hong Kong, South Africa,
Singapore and an affiliate office in London. Being a part of HSBC Holdings
plc, HSBC Bank International has the experience to offer customers living and
or working abroad, tailored offshore financial solutions.

For more information visit: www.offshore.hsbc.com

    Media enquiries to:

    Karen Butcher / Nick Woods
    Hill & Knowlton
    +44(0)207-413-3181 / +44(0)207-413-3515
    karen.butcher@hillandknowlton.com / nick.woods@hillandknowlton.com

Media enquiries to: Karen Butcher, Hill & Knowlton, +44(0)207-413-3181, karen.butcher at hillandknowlton.com; Nick Woods, +44(0)207-413-3515, nick.woods at hillandknowlton.com