HSBC
HSBC Holdings plc (, , , , ) is one of the largest
banking groups in the world, ranked the fifth-largest company and third-largest banking company in the world in
Forbes Global 2000. Its head office is located in the
HSBC Tower in
London's
Canary Wharf. The group is named after its founding member, the
Hongkong and Shanghai Banking Corporation, a bank established by
Thomas Sutherland, a
Scot, to finance British trade in the
Far East in
1865.
The bank is the second largest
corporation in the world in terms of assets.
[http://finance.yahoo.com/q/bs?s=HBC&annual] It reports its results in
United States dollars since 80% of its earnings originate from outside the
United Kingdom. Nearly 22% of its earnings are from operations in
Hong Kong, where it was headquartered until 1991. It is the largest bank in Hong Kong, and at the end of 2004 it was the third largest banking group in the world by
Tier 1 capital.
[http://www.economist.com/markets/displayStory.cfm?story_id=4174345]The HSBC logo, known as the
Hexagon, is derived from the Hongkong and Shanghai Banking Corporation's 19th Century house flag, itself derived from the
Scottish flag which is the angular cross that
Saint Andrew (the patron saint of Scotland) was crucified upon.
As of 2005
Michael Geoghegan, the company's CEO, was earning over £700,000.00 (over 1 million US dollars) per year, and the chairman Sir
John Bond, who retired in 2006, was earning 1.8 million US dollars. HSBC made record profits in the 2004-2005 year earning over 12 billion GBP or more than 20 billion US dollars.
HSBC splits its business into four distinct groups, on a global basis:
Personal Financial Services
HSBC provides more than 100 million customers world-wide with a full range of personal financial services, including
current and
savings accounts,
mortgages,
auto financing,
insurance,
credit cards,
loans,
pensions and
investments. The Consumer Finance group facilitates
point of sale credit to consumers, and lends money and provides related services to meet the financial needs of everyday people.
Commercial Banking
HSBC provides financial services to small, medium-sized and middle-market enterprises. The group has almost 2.5 million of such customers, including
sole proprietors,
partnerships,
clubs and
associations,
incorporated businesses and
publicly quoted companies.
Corporate, Investment Banking and Markets
This customer group provides tailored financial services to
corporate and
institutional clients. Business lines comprise Global Markets, Corporate and Institutional Banking, Global Transaction Banking and Global Investment Banking.
Private Banking
Private Banking provides financial services to high net worth individuals and their families in 68 cities. Over the last five years, acquired companies such as
Republic New York Corporation,
Safra Republic Holdings and
The Bank of Bermuda have been integrated into HSBC's private banking businesses.
Managing for Value 1998-2003
Managing for Value was the strategy followed by the group between 1998 and 2003.
Managing for Growth 2003-2008
HSBC launched
Managing for Growth at the end of 2003. This is a strategic plan that provides a blueprint for growth and development. HSBC aims to be the world's leading financial services company, defined as being preferred, admired, dynamic, and recognised for giving customers a fair deal.
*Brand: to make HSBC and its hexagon symbol one of the world's leading brands for customer experience and corporate social responsibility;
*Personal Financial Services: drive growth in key markets and through appropriate channels to make HSBC the strongest global player in personal financial services;
*Consumer Finance: extend the reach of this business to existing customers through a wider product range, and penetrate new markets;
*Commercial Banking: utilise HSBC's international customer base through effective relationship management and improved product offerings in all the Group's markets;
*Corporate, Investment Banking and Markets: accelerate growth by enhancing capital markets and advisory capabilities focused on client service in defined sectors where HSBC has critical relevance and strength;
*Private Banking: serve the Group's highest value personal clients around the world;
*People: attract, develop and motivate HSBC's staff, rewarding success and rejecting mediocrity; and
*TSR: fulfill HSBC's TSR target by achieving strong competitive performances in earnings per share growth and efficiency.
The HSBC Group operates as a number of local banks around the world. Outlined below are operations in countries which represented profit before tax greater than
US$50 million.
[http://www.img.ghq.hsbc.com/public/groupsite/assets/investor/060515_usb_2006_global_financial_services_conference.pdf Presentation by Douglas Flint, Group Finance Director at the UBS 2006 Global Financial Services Conference in New York on 15 May 2006] For details of other group companies see
:Category:HSBC.
Americas
*
HSBC Bank Argentina SA has around 150 branches throughout Argentina providing a full range of banking and financial products and services to over 1.2 million customers.
Midland Bank purchased a stake in
Banco Roberts SA in 1987; in 1997 HSBC took full control of the bank and rebranded it HSBC.
*
The Bank of Bermuda Limited was acquired by HSBC in February 2004. Founded in 1889, it is a leading provider of fund administration, trust, custody, asset management and banking services, since the acquisition the group has focused its global efforts in some areas of these services on the island.
*
HSBC Bank Brasil S.A.- Banco Multiplo is HSBC's largest presence in
South America. It was established in March 1997 with the acquisition of the assets, liabilities and subsidiaries of Banco
Bamerindus do Brasil S.A., which was established in 1952. HSBC is now among the ten largest banks in Brazil, with more than 1,700 branches and sub-branches in 550 Brazilian cities.
*
HSBC Bank Canada is the seventh largest bank in Canada, with offices in every province except for
Prince Edward Island, and is the largest foreign-owned bank in the country. HSBC has a strong presence in
overseas Chinese communities especially in
Vancouver and
Toronto, and is the only Canadian bank with headquarters in
British Columbia.
*
HSBC Mexico, SA is one of Mexico's four largest banking and financial service companies, with 1,400 branches, 4,800 ATMs and 6 million customers. HSBC purchased
Banco Internacional, S.A. known as Bital, in November 2002, rebranding it overnight in January 2004.
*
HSBC Bank USA N.A. and HSBC Finance Corporation represent the group's business in the US, which has been built up via the acquisition of
Marine Midland (1980),
Republic National Bank (1999),
Household International (2003) and the
Metris Companies (2005) among others. HSBC Bank USA is a full service bank, with a strong branch network in
New York State but also operating nationwide. HSBC Finance Corporation focuses on selected lines of consumer lending with branch networks across the US.
Asia Pacific
*
HSBC Bank Australia Limited gained its banking licence in 1986. Today, a full range of Personal and Commercial services are offered from a network of branches as well as via direct channels.
|
The Hongkong and Shanghai Banking Corporation building on The Bund (with the round dome, currently houses the Shanghai Pudong Development Bank). |
*
Hongkong and Shanghai Banking Corporation HSBC established its
Shanghai branch office on 3 April 1865 and has had a continuous presence in the city since then, except during the Japanese Occupation. Until the economic reforms of the late 1970s, its activities were mainly in inward remittances and export bills, however its activities now span a wider range. The bank has purchased stakes in various local firms, including 19.9% of
Bank of Communications, 8% of
Bank of Shanghai and 19.9% of
Ping An Insurance.
*
Hongkong and Shanghai Banking Corporation and Hang Seng Bank HSBC first opened for business in
Hong Kong on
3 March 1865.
Hong Kong dollar banknotes are issued by three
commercial banks in the Hong Kong SAR, of which HSBC is the most prolific by value. The
Hang Seng Index for stock prices in
Hong Kong is named after the Hang Seng Bank. The two banks are today first and second by market share in Hong Kong.
*
Hongkong and Shanghai Banking Corporation The
Mercantile Bank of India, London and China was established in October
1853 in
Bombay (now
Mumbai). The Mercantile Bank was acquired in
1959 by HSBC. HSBC is now one of the fastest growing foreign banks in India, both in domestic banking and support operations for worldwide operations (see
Global Service Centres).
*
Hongkong and Shanghai Banking Corporation HSBC opened its first Indonesian office in
Jakarta in 1884 as The Hongkong and Shanghai Banking Corporation Limited. Having been able to restart its operations after the
Second World War, it was again forced to close in mid-1960s, however the Bank was granted a new banking licence in
1968 its operations have grown to make it one of the largest foreign banks operating in Indonesia.
*
HSBC Bank Malaysia Berhad traces its history back to the opening of the first HSBC office in
Penang in
1884. The bank later became an issuer of currency notes for the
Malaysian government. A gradual expansion programme resulted in the bank's incorporation, the first foreign institution to do so in Malaysia in
1994. The bank today provides a full range of personal and commercial financial services.
*
Hongkong and Shanghai Banking Corporation operates as a full service bank with its headquarters in
Collyer Quay, it is an approved Primary Dealer in the Singapore Government Securities Market and an Approved Bond Intermediary, with over a hundred staff operating one of the largest integrated dealing rooms in
Singapore.
*
Hongkong and Shanghai Banking Corporation is expanding in competitive
South Korean market, currently operating from a network of 14 branches, the first having been opened in
Jemulpo in
1897 .
*
Hongkong and Shanghai Banking Corporation offers a wide range of financial products in
Taiwan as part of its
Greater China operations. Having first appointed an Agent in
Tamsui in
1885, it has now reached an 18 location operation.
*
Hongkong and Shanghai Banking Corporation operates a significant (greater than
US$50m) business in
Thailand, including personal financial services as well as a corporate and commercial banking operation.
Europe
|
UK & World headquarters at 8 Canada Square. |
*
HSBC SA operates around 800 branches in
France primarily under the HSBC brand. Prior to November 2005 it was known as
Crédit Commercial de France. Having become a wholly owned subsidiary of HSBC in July 2000, HSBC France is now the HSBC Group's lead bank in the
Eurozone, focusing on certain capital market products for a global audience, and high net worth and international business in France.
*
HSBC Trinkaus & Burkhardt KGaA was founded in 1785 and is one of the longest-established members of the HSBC Group. It has operations in private, commercial and investment banking and asset management.
*
HSBC Bank plc and a number of subsidiaries have operations in
insurance,
reinsurance,
securities services and a newly established
consumer finance business. The fund management business had assets in excess of
US$20bn
as of 2006.
[http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=THE%20MARKET-qqqs=themarket-qqqid=15944-qqqx=1.asp The Post.ie, HSBC Ireland]*
HSBC Bank Malta plc is one of the largest banks in
Malta. It is a listed company but its majority shareholder is the HSBC Group. Formerly the
Mid-Med Bank, HSBC Bank Malta is the second-longest established bank in Malta.
*
HSBC Private Bank (Suisse) SA is the
Swiss operating subsidiary of the group's Private Banking business, with 12 locations in the country. Much of the private banking business takes a lead from work done in Switzerland, with a total of 74 locations around the world operating solely for private banking business.
*
HSBC Bank AS is now the fifth largest private bank in
Turkey, having expanded
organically and via
acquisition since entering the market in 1990. The bank has a network of around 160 branches, offering products and services to corporate, commercial and personal customers, both under the HSBC brand as well as the
Advantage brand.
*
HSBC Bank plc is one of the "Big 4" high street banks in the
UK, maintaining a large network of branches in
England and
Wales, with a smaller presence in
Scotland and
Northern Ireland. It also operates the telephone and internet bank
First Direct, the consumer lending brands
Household Bank and
Beneficial Finance, and the financial services division of
Marks & Spencer.
Middle East and Africa
*
HSBC Bank Egypt SAE was founded in 1982, and rebranded as HSBC in April 2001 after HSBC lifted its ownership stake from 40% to 94.5%. HSBC Bank Egypt is one of the largest
multinationals and fastest growing banks in
Egypt, providing a comprehensive range of banking and related financial services through a network of 22 branches.
*
SABB (The Saudi British Bank) In
Saudi Arabia HSBC is represented by
The Saudi British Bank which is a 40% owned subsidiary, and also a joint venture partner in
HSBC Saudi Arabia Limited, the kingdom's first full service independent
investment bank.
*
HSBC Bank Middle East Limited HSBC provides a range of banking services for both corporate and individual customers in
Qatar. HSBC is the largest foreign bank in Qatar and has five branches, in
Doha, Al Sadd, West Bay, Rayyan and Grand Hamad Street as well as a large network of ATMs at 21 different locations.
*
HSBC Bank Middle East Limited The
United Arab Emirates represents a key part of HSBC Bank Middle East's business, with 16 branches and the firm's head office located here.
Group Service Centres
As a cost saving measure HSBC is
offshoring processing work to lower cost economies in order to reduce the cost of providing services in developed countries. These locations take on work such as
data processing and
customer service, but also internal
software engineering at Pune, Guangzhou and in Brazil.
The BBC quotes Chief Operating Officer,
Alan Jebson in March 2005, as saying he would be very surprised if less than 25,000 people were working in the centres over the next three years: "I don't have a precise target but I would be surprised if we had less than 15 (global service centres) in three years' time". He went on to say that each centre cost the bank from $20m to $30m to set up, but that for every job moved the bank saves about $20,000 (£10,400).
[http://news.bbc.co.uk/2/hi/business/4353423.stm]The BBC go on to explain how
trade unions, particularly in the US and UK, blame these centres for job losses in developed countries, and also for the effective imposition of wage caps on their members.
Currently centres exist in five countries, in
India in
Hyderabad,
Bangalore,
Visakhapatnam,
Mumbai,
Kolkata and
Pune, in
China in
Shanghai,
Guangzhou and
Shenzhen, in
Kuala Lumpur (
Malaysia),
Colombo (
Sri Lanka) and
Manila (
Philippines). There is also a trial going on in
Malta to asses the possibility of offshoring a UK high value call centre. Future options under consideration are reported to be further software development centres in
Brazil and/or
Mexico, and a processing centre in
Vietnam to access the
French skills of the population and therefore cut costs in the bank's
French operation.
On June 27th 2006, HSBC reported that a "small number" of customers had suffered from fraud totalling £233,000 after an employee at the Bangalore call centre supplied confidential customer information to fraudsters.
[http://news.bbc.co.uk/1/hi/business/5122886.stm]HSBC Premier
The group has
HSBC Premier as its premium financial services product - the brand name is used in many market places around the world, however the exact benefits and qualification criteria vary. Broadly customers have a dedicated
Relationship Manager, global 24 hour access to Premier call centres,
concierge services and preferential rates.
HSBC Bank International
HSBC Bank International Limited is the
offshore banking arm of the HSBC Group, it focuses on providing offshore solutions and cross border services to
expatriates and
migrants. It originated from the business started by
Midland Bank and is based in the
Channel Islands with further operations on the
Isle of Man.
HSBCnet
Corporate, Investment Banking and Markets has
HSBCnet as its online brand presence, having originated as the name for the new corporate internet banking system.
The group announced in November 1998 that the HSBC brand and the hexagon symbol would be adopted as the unified brand in all the markets where HSBC operates, with the aim of enhancing recognition of the Group and its values by customers, shareholders and staff throughout the world.
Hexagon symbol
This was originally adopted by the Hongkong and Shanghai Banking Corporation as its logo in
1983. It was developed from the bank's house
flag, a white rectangle divided diagonally to produce a red
hourglass shape. Like many other Hong Kong company flags that originated in the
19th century, the design was based on the cross of Saint Andrew.
Sponsorship
Having sponsored the
Jaguar Racing Formula One team since the days of
Stewart Grand Prix, HSBC ended its relationship with the sport when
Red Bull purchased Jaguar Racing from
Ford. HSBC has now switched its focus to golf, taking title sponsorship of events such as the
HSBC World Match Play Championship,
HSBC Women's World Match Play Championship and
HSBC Champions.
In football HSBC sponsor French club
AS Monaco.
In Australia, HSBC sponsors the
New South Wales Waratahs rugby team in the
Super 14 competition, as well as the
Hawthorn Football Club in the
Australian Football League.
In the United States, HSBC owns the naming rights to the home arena of the
Buffalo Sabres until 2026, the team plays in the North American
National Hockey League.
HSBC's other sponsorships are mainly in the area of education, health and the environment.
Slogan
Since the global adoption of the HSBC brand the following strap lines have been used:
1999:
Your world of financial services2002:
The world's local bank |
The Hong Kong headquarters of HSBC. |
For the history of the HSBC Group prior to the founding of HSBC Holdings plc in
1991 see
Hongkong and Shanghai Banking Corporation.
*
1991 - shares are listed on the
London and
Hong Kong stock exchanges.
*
1992 - acquisition of
Midland Bank in the
United Kingdom.
*
1993 - the headquarters of HSBC Holdings moves from
1 Queens Road Central, Hong Kong to
10 Lower Thames Street, London.
*
1997 - acquisition of
Roberts S.A. de Inversiones of
Argentina and
Banco Bamerindus of
Brazil.
*
1999 - acquisition of
Republic New York; shares are traded on a third stock exchange, the
New York Stock Exchange, as
American Depositary Receipts (ADRs).
*
2000 - acquisition of
Crédit Commercial de France; shares are traded on a fourth stock exchange,
Euronext in Paris.
*
2001 - acquisition of
Demirbank of
Turkey.
*
2002 - acquisition of
Grupo Financiero Bital, S.A. de C.V. of
Mexico.
*
2003 - the headquarters of HSBC Holdings moves from
10 Lower Thames Street, London to
8 Canada Square, London.
*
2003 - acquisition of
Household International of the
United States.
*
2003 -
November 20, terrorist attack: a
bomb blast in
Istanbul damaged the bank's head office in
Turkey, causing several deaths and hundreds of injuries.
*
2004 - acquisition of
The Bank of Bermuda of
Bermuda; shares are traded on a fifth stock exchange, the Bermuda Stock Exchange.
*
2004 - acquisition of
Marks & Spencer Retail Financial Services Holdings Ltd.
*
2004 - acquisition of 19.9% of the
Bank of Communications of
Shanghai.
*
2005 - acquisition of
Metris Companies, Inc of the
United States.
*
2005 - during October 2005 HSBC acquired 70.1%
Dar Es Salaam Investment Bank, having begun negotiations earlier in the year. The
Coalition Provisional Authority originally granted HSBC along with
Standard Chartered and
National Bank of Kuwait licences to operate in
Iraq.
*
2006 - announcement of pre-tax profits of £11.91 billion, a record for a British Bank.
*
2006 - acquisition of
Banca Nazionale del Lavoro of
Argentina adds 90 branches to the South American business.
*
2006 - in
July - announces its intention to acquire
Grupo Banistmo, the largest financial services company in
Central America, based in
Panama.
*
Banks of the United Kingdom*
List of buildings and structures in Hong Kong*
HSBC Towers
*
HSBC Buildings
*
Primary dealers*
Company website *
HSBC Auto Finance *
HSBC history at official site*
HSBC Private Bank*
HSBCnet*
Your Point of View - HSBC's latest advertising campaign*
Positioning Versus Resource-Based Approaches as Competitive Strategy: an Empirical Study of the HSBC Group, 1945 â€" 2002*
Weekly HSBC Watch Report by Inner City Press*
American DreamCard MasterCard website (issued by HSBC)Articles
*
The Banker: HSBC's killer move - 06 October, 2003 Website registration required to view this page.
