HSBC
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- HSBC redirects here, for other uses see HSBC (disambiguation).
{{Infobox Company
| company_name = HSBC Holdings PLC
| company_logo = Image:Hsbc.png
| company_type = Public
| foundation = 1865
| location = London, United Kingdom
| key_people = Sir John Bond, Executive Chairman
Stephen Green, CEO
| industry = Finance and Insurance
| products = Financial Services
| revenue = Template:Profit $61.7 billion USD (2005) [1]
| operating_income =
| net_income =
| num_employees = 284,000
| homepage = www.hsbc.com
}}
HSBC Holdings PLC (Template:Lse, Template:Sehk, Template:Nyse, Template:Euronext, Template:BSX) 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 the London Docklands. The group is named after its founding member, the Hongkong and Shanghai Banking Corporation Limited, a bank established by Scot Thomas Sutherland to finance British trade in the Far East in 1865.
The bank is the second largest corporation in the world in terms of assets ([2]). It reports its results in US dollars since 80% of its earnings come from outside the UK. Nearly 22% of its earnings comes 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 [3].
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 St. Andrew (the patron saint of Scotland) was crucified upon.
Contents |
Customer groups
HSBC splits its business into four distinct groups, on a global basis:
Personal Financial Services
HSBC provides more than 100 million customers worldwide with a full range of personal financial services, including current and savings accounts, mortgages, 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 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 Limited have been integrated into HSBC's private banking businesses.
Strategy
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: fulfil HSBC's TSR target by achieving strong competitive performances in earnings per share growth and efficiency.
Local Operations
Americas
- Template:Flagicon HSBC Bank Argentina SA has 58 branches throughout Argentina providing a full range of banking and financial products and services to over 512,000 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.
- Template:Flagicon The Bank of Bermuda 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.
- Template:Flagicon 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.
- Template:Flagicon 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.
- Template:Flagicon 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.
- Template:Flagicon 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 (1987), Republic National Bank 1999, Household International (2003) and the Metris Companies (2005) among others. HSBC Bank USA is a full service bank, originally headquartered in Buffalo, New York, now headquartered in New York City but operating nationwide. HSBC Finance Corporation focuses on selected lines of consumer lending with branch networks across the US.
Asia Pacific
- Template:Flagicon 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.
- Template:Flagicon 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.
- Template:Flagicon 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.
- Template:Flagicon 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).
- Template:Flagicon 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.
Europe
- Template:Flagicon HSBC SA operates around 800 branches in France primarily under the HSBC brand. Prior to the 1st 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.
- Template:Flagicon 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.
- Template:Flagicon 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.
- Template:Flagicon 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.
- Template:Flagicon 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 much 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 and Spencers.
Middle East and Africa
- HSBC Bank Middle East Limited operates in a range of Middle Eastern countries including Bahrain, Jordan, Lebanon, Oman, the Palestinian Autonomous Area, Qatar, the United Arab Emirates and Kuwait, with its headquarters and incorporation in Jersey.
- Template:Flagicon 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.
- Template:Flagicon Dar Es Salaam Investment Bank During October 2005 HSBC completed the acquisition of 70.1% of this 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.
- Template:Flagicon 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.
For details of other group companies see Category:HSBC.
Global product lines and programmes
Global 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 development at Pune and Guangzhou.
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).
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, Vizag, Mumbai, Calcutta 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.
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, it now represents the division, as its URL demonstrates.
Brand and Advertising
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 St Andrew. Image:Webber usgp 2004.jpg
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 Australia, HSBC sponsors the NSW Waratahs rugby team in the Super 14 competition, as well as the Hawthorn Hawks football club in the Australian Football 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 straplines have been used:
1999: Your world of financial services
2002: The world's local bank
History of HSBC Holdings plc
Image:HSBC Hong Kong Headquarters.jpg
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 NYSE, 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 TAS 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, 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 Limited 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, China.
- 2005 - acquisition of Metris Companies, Inc of the United States.
- 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
See also
- Banks of the United Kingdom
- List of buildings and structures in Hong Kong
- HSBC Towers
- HSBC Buildings
- Primary dealers
External links
- Company website
- 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 – 2002
Articles
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