HSBC
Unanswered Questions
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HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf
, London
, United Kingdom
. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes
magazine. It has around 7,500 offices in 87 countries and territories across Africa, Asia, Europe, North America and South America and around 100 million customers. As of 30 June 2010, it had total assets of $2.418 trillion, of which roughly half were in Europe, a quarter in the Americas and a quarter in Asia.
HSBC Holdings plc was founded in London in 1991 by The Hongkong and Shanghai Banking Corporation to act as a new group holding company
and to enable the acquisition of UK-based Midland Bank
. The origins of the bank lie in Hong Kong
and Shanghai
, where branches were first opened in 1865. Today, HSBC remains the largest bank in Hong Kong, and recent expansion in mainland China
, where it is now the largest international bank, has returned it to that part of its roots.
HSBC is a universal bank
and is organised within four business groups: Commercial Banking; Global Banking and Markets (investment banking
); Personal Financial Services (retail banking
); and Private Banking.
HSBC's primary listing is on the London Stock Exchange
and it is a constituent of the FTSE 100 Index
. It has secondary listings on the Hong Kong Stock Exchange
(where it is a constituent of the Hang Seng Index
), the New York Stock Exchange
, Euronext Paris
and the Bermuda Stock Exchange
. As of October 2011, it was the second most highly capitalised company listed on the London Stock Exchange
, with a market capitalisation of £93 billion.
HSBC (abbreviation origin: the "Hongkong and Shanghai Banking Corporation") was founded in the former British colony of Hong Kong
(in March 1865) and Shanghai (one month later) by Scotsman Sir Thomas Sutherland
(1834–1922). HSBC Holdings plc established in 1990 became the parent company to The Hongkong and Shanghai Banking Corporation in preparation for its purchase of Midland Bank
in the United Kingdom and restructuring of ownership domicile for the impending transfer of sovereignty of Hong Kong to China. HSBC Holdings acquisition of Midland Bank gave HSBC Group a substantial market presence in the United Kingdom which was completed in 1992. As part of the takeover conditions for the purchase of Midland Bank, HSBC Holdings plc was required to relocate its world headquarters from Hong Kong to London in 1993.
Major acquisitions in South America started with the purchase of the Banco Bamerindus of Brazil for $1bn in March 1997
and the acquisition of Roberts SA de Inversiones of Argentina for $600m in May 1997.
In 1980, HSBC acquired a 51% shareholding in Marine Midland Bank
, which it extended to full ownership in 1987.
In May 1999, HSBC continued its US acquisitions with the purchase of Republic National Bank of New York for $10.3bn.
Expansion into Continental Europe
took place in April 2000 with the acquisition of Crédit Commercial de France
, a large French bank for £6.6bn.
In July 2001 HSBC bought Demirbank
, an insolvent Turkish bank. In July 2002, Arthur Andersen announced that HSBC USA, Inc., through a new subsidiary, Wealth and Tax Advisory Services USA Inc. (WTAS
), would purchase a portion of Andersen's tax practice. The new HSBC Private Client Services Group would serve the wealth and tax advisory needs of high net worth individuals. Then in August 2002 HSBC acquired Grupo Financiero Bital, SA de CV, Mexico's third largest retail bank for $1.1bn.
The new headquarters of HSBC Holdings at 8 Canada Square, London officially opened in April 2003.
Then in September 2003 HSBC bought Polski Kredyt Bank SA of Poland for $7.8m.
In June 2004 HSBC expanded into China buying 19.9% of the Bank of Communications
of Shanghai.
In the United Kingdom HSBC acquired Marks & Spencer Retail Financial Services Holdings Ltd for £763m in December 2004.
Acquisitions in 2005 included Metris Inc, a US credit card issuer for $1.6bn in August and 70.1% of Dar Es Salaam Investment Bank of Iraq in October.
In April 2006 HSBC bought the 90 branches in Argentina of Banca Nazionale del Lavoro
for $155m.
In December 2007 HSBC acquired The Chinese Bank in Taiwan.
In May 2008 HSBC acquired IL&FS Investment, an Indian retail broking firm.
, a US credit card issuer and subprime lender. In a 2003 cover story, The Banker
noted "when banking historians look back, they may conclude that [it] was the deal of the first decade of the 21st century". Under the new name of HSBC Finance
, the division was the second largest subprime lender in the US.
In March 2009, HSBC announced that it would shut down the branch network of its HSBC Finance arm in the U.S., leading to nearly 6,000 job losses and leaving only the credit card business to continue operating.
Chairman Stephen Green
stated, "HSBC has a reputation for telling it as it is. With the benefit of hindsight, this is an acquisition we wish we had not undertaken."; analyst Colin Morton said, "the takeover was an absolute disaster".
Although it was at the centre of the subprime storm, the wider group has weathered the financial crisis of 2007–2010 better than other global banks. According to Bloomberg
, "HSBC is one of world’s strongest banks by some measures." When HM Treasury
required all UK banks to increase their capital in October 2007, the group transferred £750 million to London within hours, and announced that it had just lent £4 billion to other UK banks. In March 2009, it announced that it had made US$9.3bn of profit in 2008 and announced a £12.5bn (US$17.7bn; HK$138bn) rights issue
to enable it to buy other banks that were struggling to survive. However, uncertainty over the rights' issue's implications for institutional investors caused volatility in the Hong Kong stock market: on 9 March 2009 HSBC's share price fell 24.14%, with 12 million shares sold in the last few seconds of trading.
On 11th May 2011 the new chief executive Stuart Gulliver
announced that HSBCs would refocus its business strategy and that a large-scale retrenchment of operations, particularly in respect of the retail sector, was planned. HSBC would no longer seek to be 'the world's local bank', as costs associated with this were spiralling and US$3.5bn needed to be saved by 2013, with the aim of bringing overheads down from 55% of revenues to 48%. Gulliver stated that HSBC would focus on the business of wealth management in dynamic and developing markets, principally in the UK and far east. Immediate judgement was passed on this plan, with the share price shrinking 1.5%. Gulliver also added that a decision on whether or not to relocate its head office out of the UK tax domain would be made at the end of the year. In 2010, then-chairman Stephen Green planned to depart HSBC to accept a government appointment in the Trade Ministry. Group Chief Executive
Michael Geoghegan
was expected to become the next chairman. However, while many current and former senior employees supported the tradition of promoting the chief executive to chairman, many shareholders instead pushed for an external candidate. Geoghegan's detractors noted that while he was effective at getting things done, they argued that his blunt style was unsuited to leading the board and representing HSBC with heads of government, and his appointment as chairman would also flout UK governance guidance that barred chief executives becoming chairman. Geoghegan had reportedly threatened to quit if he was passed over in favour of former Goldman Sachs President John Thornton
. HSBC's board of directors had reportedly been split over the succession planning, and investors were alarmed that this row would damage the company.
On 23 September 2010, Geoghegan announced he would step down as chief executive of HSBC.
He was succeeded as chief executive of HSBC by Stuart Gulliver
, while Green was succeeded as Chairman by Douglas Flint
; Flint was serving as HSBC's finance director (chief financial officer). August 2011: Further to CEO Stuart Gulliver's plan to cut $3.5 billion in costs over the next 2 years, HSBC announced that it will cut 25,000 jobs and exit from 20 countries by 2013 in addition to 5,000 job- cuts announced earlier in the year. The consumer banking division of HSBC will focus on the UK, Hong Kong
, high-growth markets such as Mexico
, Singapore
, Turkey
and Brazil
, and smaller countries where it has a leading market share.
August 1, 2011 "to align our U.S. business with our global network and meet the local and international needs of domestic and overseas clients", HSBC Holding Plc, agreed to sell 195 branches in New York
and Connecticut
for around $1 billion to First Niagara Financial Group Inc. HSBC will also close 13 branches in Connecticut and New Jersey
in 2012. The rest of HSBC's U.S. network will only be about half from a total 470 branches before divestments.
On August 9, 2011, [Capital One Financial Corp.] agreed to acquire HSBC's U.S. credit card business for $2.6 billion, netting HSBC Holdings an estimated after-tax profit of $2.4 billion. In September was announced that HSBC seeks to sell its general insurance business for around $1 billion. This is a part of Chief Executive Officer Stuart gulliver's plan to divest some assets.
As of 2 April 2008, according to Forbes magazine, HSBC was the fourth largest bank in the world in terms of assets ($2,348.98 billion), the second largest in terms of sales ($146.50 billion) and the largest in terms of market value ($180.81 billion). It was also the most profitable bank in the world with $19.13 billion in net income in 2007 (compared to Citigroup
's $3.62 billion and Bank of America
's $14.98 billion in the same period).
HSBC is the largest bank both in the United Kingdom and in Hong Kong and prints most of Hong Kong's local currency in its own name. Since the end of 2005, HSBC has been rated the largest banking group in the world by Tier 1 capital
.
The HSBC Group has a significant presence in each of the world's major financial markets, with the Americas, Asia Pacific and Europe each representing around one third of the business. With around 8,000 offices in 87 countries & territories, 210,000 shareholders, 300,000 staff and 128 million customers worldwide, HSBC arguably has the most international presence among the world's multinational banking giants.
The HSBC Group operates as a number of local banks around the world, which explains its advertising tagline
"The World's Local Bank." In response to ongoing discussions about the survival strategies for banks, and the suggestion of "Living Wills" HSBC explains its structure as "separately incorporated and capitalised" the structure is based on a lead bank in each region, which has responsibility for the group's operations in that area, as listed below. For details of other group companies see :Category:HSBC.
HSBC is currently audited by one of the Big Four auditors
, KPMG
. The HSBC and KPMG headquarters are adjacent to one another, with KPMG occupying 15 Canada Square. HSBC Main Building, Hong Kong where the CEO office is, also adjacent to KPMG office locate in Prince's Building
.
, London
. On Friday 25 September 2009 the company stated that while its head office would remain in London and the main regulator would continue to be the Financial Services Authority
, the CEO would move from London to Hong Kong beginning on February 2010.
Mexico HSBC Mexico SA
Brazil HSBC Bank Brazil SA, Banco Multiplo
Argentina HSBC Bank Argentina SA
Hong Kong The Hongkong and Shanghai Banking Corporation Ltd
Hong Kong Hang Seng Bank Ltd
Mainland China HSBC Bank (China) Company Ltd
Malaysia HSBC Bank Malaysia Berhad
Australia HSBC Bank Australia Limited
Arab League HSBC Bank Middle East Ltd
Egypt HSBC Bank Egypt SAE
Saudi Arabia The Saudi British Bank
United States HSBC Bank USA Inc
United States HSBC Finance Corporation
Canada HSBC Bank Canada
Early Modern France HSBC France
Germany HSBC Trinkaus und Burkhardt AG
Malta HSBC Bank Malta plc
HSBC Private Bank (UK) Ltd
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
(India), Hyderabad (India), Vishakhapatnam (India), Kolkata
(India), Guangzhou
(China), Curitiba
(Brazil) and Kuala Lumpur
(Malaysia).
Chief Operating Officer Alan Jebson said in March 2005 that he would be very surprised if fewer 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).
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, HSBC operates centres out of eight countries, including Brazil (Curitiba
), The Czech Republic (Ostrava
), India (Kolkata
, Hyderabad, Bangalore
, Visakhapatnam
, Mumbai
, Gurgaon
and Pune
), China (Shanghai, Guangzhou
and Shenzhen
), Malaysia (Kuala Lumpur
), Poland (Krakow
), Sri Lanka (Rajagiriya
) and Philippines (Manila
). The Malta trial for a UK high value call centre has resulted in a growing operation that country. An option under consideration is reported to be a processing centre in Vietnam to access the French skills of the population and therefore cut costs in the bank’s French operations.
On 27 June 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.
is the offshore bank
ing arm of the HSBC Group, focusing on providing offshore solutions and cross border services to expatriate
s and migrants
. It provides a full range of multi-currency personal banking services to a range of customer segments, including a full internet banking and telephone banking service. Sometimes referred to as "HSBC Offshore", the business also offers independent financial planning, and has representative offices all over the world, often working alongside local HSBC operations in those regions.
HSBC Bank International originated from the business started by Midland Bank and is based in the Channel Islands
with further operations on the Isle of Man
. Its operations in the Channel Islands are centred around its registered headquarters on the seafront in St Helier, Jersey
. Named 'HSBC House', the building comprises departments such as Premier, Global Funds & Investments, e-Business and a 24 hour 'Direct Banking Centre'.
The system provides access to transaction banking functionality – ranging from payments and cash management to trade services features – as well as to research and analytical content from HSBC. It also includes foreign exchange and money markets trading functionality.
The system is used widely by HSBC's high-end corporate and institutional clients served variously by the bank's global banking and markets, commercial banking and global transaction banking divisions.
HSBCnet is also the brand under which HSBC markets its global e-commerce proposition to its corporate and institutional clients.
HFC Bank (UK Operation) is a wholly owned subsidiary, with 135 High Street branches in the UK selling loans to the "sub-prime" market. During 2007 and 2008, it has been trying to fend off a union recognition campaign by the Trade Union Unite.
, a white rectangle divided diagonally to produce a red hourglass shape. Like many other Hong Kong company flags that originated in the 19th century, and because of its founder's nationality, the design was based on the cross
of Saint Andrew
. The logo was designed by graphic artist Henry Steiner
.
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
(now defunct), HSBC Champions
and HSBC Women's Champions
.
In football HSBC sponsors French club AS Monaco and Mexican club C.F. Pachuca, and in rugby league
, HSBC sponsors Telford Raiders
in the Rugby League Conference
. In Australia, HSBC sponsors the New South Wales Waratahs
rugby team in the Super 15 rugby union
competition, as well as the Hawthorn Football Club
in the Australian Football League
.
HSBC’s other sponsorships are mainly in the area of education, health and the environment. In November 2006, HSBC announced a $5 million partnership with SOS Children
as part of Future First.
HSBC sponsors the Great Canadian Geography Challenge, which has had around 2 million participants in the past 12 years. Since 2001, HSBC has sponsored the Celebration of Light
, an annual musical fireworks competition in Vancouver, British Columbia
, Canada. In 2007 HSBC announced it would be a sponsor of the National Hockey League's Vancouver Canucks
and Calgary Flames
. HSBC has also sponsored a professional gaming team that was disbanded late 2007.
HSBC sponsored the 2009 British and Irish Lions tour to South Africa
.
HSBC is the official banking partner of the Wimbledon Tennis Championships, providing banking facilities on site and renaming the Road to Wimbledon junior event, as The HSBC Road to Wimbledon National 14 and Under Challenge.
HSBC was named the 'Official Banking Partner' of The Open Championship
, in a five year deal announced in 2010.
and savings account
s, mortgage loan
s, car financing, insurance, credit cards, loans, pensions and investments.
Retail Banking and Wealth Management was previously referred to as Personal Financial Services. This rename was announced during HSBC's 2011 Investor Day.
, partnerships, clubs and associations
, incorporated businesses and publicly quoted companies.
Global Banking and Markets has offices in more than 60 countries and territories worldwide, and describes itself as "emerging markets-led and financing-focused".
Global Banking and Markets is currently being led by former fixed-income trader Samir Assaf
, who was promoted from global head of markets on 10 December 2010.
HSBC Private Bank is the marketing name for the private banking business conducted by the principal private banking subsidiaries of the HSBC Group worldwide. HSBC Private Bank, together with the private banking activities of HSBC Trinkaus, known collectively as Group Private Banking, provides services to high net worth individual
s and their families through 93 locations in some 42 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. As of December 2007, profits before tax were US$1,511 million and combined client assets under management were US$494 billion.
In September 2008, HSBC announced that it would combine its two Swiss private banks under one brand name in 2009, with HSBC Guyerzeller and HSBC Private Bank to be merged into one legal entity
, under the newly appointed CEO of HSBC Private Bank, Alexandre Zeller.
Canary Wharf
Canary Wharf is a major business district located in London, United Kingdom. It is one of London's two main financial centres, alongside the traditional City of London, and contains many of the UK's tallest buildings, including the second-tallest , One Canada Square...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
magazine. It has around 7,500 offices in 87 countries and territories across Africa, Asia, Europe, North America and South America and around 100 million customers. As of 30 June 2010, it had total assets of $2.418 trillion, of which roughly half were in Europe, a quarter in the Americas and a quarter in Asia.
HSBC Holdings plc was founded in London in 1991 by The Hongkong and Shanghai Banking Corporation to act as a new group holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
and to enable the acquisition of UK-based Midland Bank
Midland Bank
Midland Bank Plc was one of the Big Four banking groups in the United Kingdom for most of the 20th century. It is now part of HSBC. The bank was founded as the Birmingham and Midland Bank in Union Street, Birmingham, England in August 1836...
. The origins of the bank lie in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
and Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, where branches were first opened in 1865. Today, HSBC remains the largest bank in Hong Kong, and recent expansion in mainland China
Mainland China
Mainland China, the Chinese mainland or simply the mainland, is a geopolitical term that refers to the area under the jurisdiction of the People's Republic of China . According to the Taipei-based Mainland Affairs Council, the term excludes the PRC Special Administrative Regions of Hong Kong and...
, where it is now the largest international bank, has returned it to that part of its roots.
HSBC is a universal bank
Universal bank
A universal bank participates in many kinds of banking activities and is both a commercial bank and an investment bank.The concept is most relevant in the United Kingdom and the United States, where historically there was a distinction drawn between pure investment banks and commercial banks. In...
and is organised within four business groups: Commercial Banking; Global Banking and Markets (investment banking
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
); Personal Financial Services (retail banking
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
); and Private Banking.
HSBC's primary listing is on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and it is a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
. It has secondary listings on the Hong Kong Stock Exchange
Hong Kong Stock Exchange
The Hong Kong Stock Exchange is a stock exchange located in Hong Kong. It is Asia's third largest stock exchange in terms of market capitalization behind the Tokyo Stock Exchange and the Shanghai Stock Exchange and fifth largest in the world...
(where it is a constituent of the Hang Seng Index
Hang Seng Index
The Hang Seng Index is a freefloat-adjusted market capitalization-weighted stock market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator of the overall market performance in Hong Kong...
), the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
, Euronext Paris
Euronext Paris
Euronext Paris is France's securities market, formerly known as the Paris Bourse, which merged with the Amsterdam, Lisbon and Brussels exchanges in September 2000 to form Euronext NV, which is the second largest exchange in Europe behind the UK's London Stock Exchange...
and the Bermuda Stock Exchange
Bermuda Stock Exchange
The Bermuda Stock Exchange , established in 1971, is currently the world’s leading fully electronic offshore securities market. The 2010 BSX 'Year End Review' report stated that the exchange's aggregate market capitalization stood at $USD319 billion.A breakdown of the securities listed on the BSX...
. As of October 2011, it was the second most highly capitalised company listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
, with a market capitalisation of £93 billion.
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
(in March 1865) and Shanghai (one month later) by Scotsman Sir Thomas Sutherland
Thomas Sutherland (banker)
Sir Thomas Sutherland, GCMG was a Scottish banker and Liberal Party politician. He founded The Hongkong and Shanghai Banking Corporation which was the founder member of HSBC Group and directed the P&O Company....
(1834–1922). HSBC Holdings plc established in 1990 became the parent company to The Hongkong and Shanghai Banking Corporation in preparation for its purchase of Midland Bank
Midland Bank
Midland Bank Plc was one of the Big Four banking groups in the United Kingdom for most of the 20th century. It is now part of HSBC. The bank was founded as the Birmingham and Midland Bank in Union Street, Birmingham, England in August 1836...
in the United Kingdom and restructuring of ownership domicile for the impending transfer of sovereignty of Hong Kong to China. HSBC Holdings acquisition of Midland Bank gave HSBC Group a substantial market presence in the United Kingdom which was completed in 1992. As part of the takeover conditions for the purchase of Midland Bank, HSBC Holdings plc was required to relocate its world headquarters from Hong Kong to London in 1993.
Major acquisitions in South America started with the purchase of the Banco Bamerindus of Brazil for $1bn in March 1997
and the acquisition of Roberts SA de Inversiones of Argentina for $600m in May 1997.
In 1980, HSBC acquired a 51% shareholding in Marine Midland Bank
Marine Midland Bank
Marine Midland Bank was a bank formerly headquartered in Buffalo with several hundred branches throughout the state of New York. Marine Midland began in 1850 in Buffalo as the Marine Trust Company with the objective of financing the new shipping trade on the Great Lakes...
, which it extended to full ownership in 1987.
In May 1999, HSBC continued its US acquisitions with the purchase of Republic National Bank of New York for $10.3bn.
Expansion into Continental Europe
Continental Europe
Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands....
took place in April 2000 with the acquisition of Crédit Commercial de France
Crédit Commercial de France
Crédit Commercial de France was a commercial bank in France, headquartered in Paris, avenue des Champs-Élysées. It became a wholly owned subsidiary of HSBC in April 2000, and was renamed HSBC France on 1 November 2005....
, a large French bank for £6.6bn.
In July 2001 HSBC bought Demirbank
Demirbank
Demirbank T.A.Ş. is a bank purchased on October 30, 2001 by HSBC from the Turkish Banking Regulator for £248 million.Demirbank was merged with the bank’s existing subsidiary in Turkey, HSBC Bank A.Ş. on December 14, 2001, creating a combined business with a balance sheet of £1.4 billion and capital...
, an insolvent Turkish bank. In July 2002, Arthur Andersen announced that HSBC USA, Inc., through a new subsidiary, Wealth and Tax Advisory Services USA Inc. (WTAS
WTAS
WTAS LLC, founded in 2002 by 25 former public accounting firm partners, is one of the largest independent tax firms in the United States, providing a wide range of tax, valuation, financial advisory and related consulting services to individual and corporate clients across the country...
), would purchase a portion of Andersen's tax practice. The new HSBC Private Client Services Group would serve the wealth and tax advisory needs of high net worth individuals. Then in August 2002 HSBC acquired Grupo Financiero Bital, SA de CV, Mexico's third largest retail bank for $1.1bn.
The new headquarters of HSBC Holdings at 8 Canada Square, London officially opened in April 2003.
Then in September 2003 HSBC bought Polski Kredyt Bank SA of Poland for $7.8m.
In June 2004 HSBC expanded into China buying 19.9% of the Bank of Communications
Bank of Communications
Bank of Communications Limited , founded in 1908, is one of the largest banks in China.-Before 1949:The Bank of Communications was founded in 1908 and emerged as one of the first few major national and note-issuing banks in the early days of the Republic of China...
of Shanghai.
In the United Kingdom HSBC acquired Marks & Spencer Retail Financial Services Holdings Ltd for £763m in December 2004.
Acquisitions in 2005 included Metris Inc, a US credit card issuer for $1.6bn in August and 70.1% of Dar Es Salaam Investment Bank of Iraq in October.
In April 2006 HSBC bought the 90 branches in Argentina of Banca Nazionale del Lavoro
Banca Nazionale del Lavoro
Banca Nazionale del Lavoro SpA is an Italian banking firm. Founded in 1913 as Istituto di Credito per la Cooperazione, it was nationalized in 1929. It was re-privatized and listed on the Milan Stock Exchange in 1998, before being acquired by French banking group BNP Paribas in 2006...
for $155m.
In December 2007 HSBC acquired The Chinese Bank in Taiwan.
In May 2008 HSBC acquired IL&FS Investment, an Indian retail broking firm.
Subprime crisis
In November 2002 HSBC expanded further in the United States. Under the chairmanship of Sir John Bond, it spent £9bn (US$15.5000bn) to acquire Household Finance Corporation (HFC)HSBC Finance
HSBC Finance Corporation is a financial services company and a member of the British HSBC Group. It is the sixth-largest issuer of MasterCard and Visa credit cards in the United States...
, a US credit card issuer and subprime lender. In a 2003 cover story, The Banker
The Banker
The Banker is an English-language monthly international financial affairs publication owned by The Financial Times Ltd. and edited in London...
noted "when banking historians look back, they may conclude that [it] was the deal of the first decade of the 21st century". Under the new name of HSBC Finance
HSBC Finance
HSBC Finance Corporation is a financial services company and a member of the British HSBC Group. It is the sixth-largest issuer of MasterCard and Visa credit cards in the United States...
, the division was the second largest subprime lender in the US.
In March 2009, HSBC announced that it would shut down the branch network of its HSBC Finance arm in the U.S., leading to nearly 6,000 job losses and leaving only the credit card business to continue operating.
Chairman Stephen Green
Stephen Green (banker)
Stephen Keith Green, Baron Green of Hurstpierpoint is a British Conservative politician the current Minister of State for Trade and Investment and former Group Chairman of HSBC Holdings plc...
stated, "HSBC has a reputation for telling it as it is. With the benefit of hindsight, this is an acquisition we wish we had not undertaken."; analyst Colin Morton said, "the takeover was an absolute disaster".
Although it was at the centre of the subprime storm, the wider group has weathered the financial crisis of 2007–2010 better than other global banks. According to Bloomberg
Bloomberg L.P.
Bloomberg L.P. is an American privately held financial software, media, and data company. Bloomberg makes up one third of the $16 billion global financial data market with estimated revenue of $6.9 billion. Bloomberg L.P...
, "HSBC is one of world’s strongest banks by some measures." When HM Treasury
HM Treasury
HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
required all UK banks to increase their capital in October 2007, the group transferred £750 million to London within hours, and announced that it had just lent £4 billion to other UK banks. In March 2009, it announced that it had made US$9.3bn of profit in 2008 and announced a £12.5bn (US$17.7bn; HK$138bn) rights issue
Rights issue
A rights issue is an issue of additional shares by a company to raise capital under a seasoned equity offering. The rights issue is a special form of shelf offering or shelf registration. With the issued rights, existing shareholders have the privilege to buy a specified number of new shares from...
to enable it to buy other banks that were struggling to survive. However, uncertainty over the rights' issue's implications for institutional investors caused volatility in the Hong Kong stock market: on 9 March 2009 HSBC's share price fell 24.14%, with 12 million shares sold in the last few seconds of trading.
2010 to present
Stuart Gulliver
Stuart Gulliver born ) is an English banking business executive. He is the Group Chief Executive of HSBC Holdings. - Biography :Stuart received a Masters in Jurisprudence from Oxford University.- Executive career :...
announced that HSBCs would refocus its business strategy and that a large-scale retrenchment of operations, particularly in respect of the retail sector, was planned. HSBC would no longer seek to be 'the world's local bank', as costs associated with this were spiralling and US$3.5bn needed to be saved by 2013, with the aim of bringing overheads down from 55% of revenues to 48%. Gulliver stated that HSBC would focus on the business of wealth management in dynamic and developing markets, principally in the UK and far east. Immediate judgement was passed on this plan, with the share price shrinking 1.5%. Gulliver also added that a decision on whether or not to relocate its head office out of the UK tax domain would be made at the end of the year. In 2010, then-chairman Stephen Green planned to depart HSBC to accept a government appointment in the Trade Ministry. Group Chief Executive
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
Michael Geoghegan
Michael Geoghegan
Michael Geoghegan CBE is an English businessman, who served as HSBC Group's chief executive from 26 March 2006 to 2010. He joined HSBC in 1973 and has previously led the group's South American and European operations.-Early life:...
was expected to become the next chairman. However, while many current and former senior employees supported the tradition of promoting the chief executive to chairman, many shareholders instead pushed for an external candidate. Geoghegan's detractors noted that while he was effective at getting things done, they argued that his blunt style was unsuited to leading the board and representing HSBC with heads of government, and his appointment as chairman would also flout UK governance guidance that barred chief executives becoming chairman. Geoghegan had reportedly threatened to quit if he was passed over in favour of former Goldman Sachs President John Thornton
John Thornton
John Jason Thornton is a former American football defensive tackle of the National Football League. He was drafted by the Tennessee Titans in the second round of the 1999 NFL Draft. He played college football at West Virginia.In addition to four years in Tennsseee, Thornton also played six seasons...
. HSBC's board of directors had reportedly been split over the succession planning, and investors were alarmed that this row would damage the company.
On 23 September 2010, Geoghegan announced he would step down as chief executive of HSBC.
He was succeeded as chief executive of HSBC by Stuart Gulliver
Stuart Gulliver
Stuart Gulliver born ) is an English banking business executive. He is the Group Chief Executive of HSBC Holdings. - Biography :Stuart received a Masters in Jurisprudence from Oxford University.- Executive career :...
, while Green was succeeded as Chairman by Douglas Flint
Douglas Flint
Douglas Jardine Flint CBE, is a British banking businessman. He is currently the Group Chairman of HSBC Holdings.- Education :Flint graduated with a bachelor's degree with honours in Accounting from the University of Glasgow...
; Flint was serving as HSBC's finance director (chief financial officer). August 2011: Further to CEO Stuart Gulliver's plan to cut $3.5 billion in costs over the next 2 years, HSBC announced that it will cut 25,000 jobs and exit from 20 countries by 2013 in addition to 5,000 job- cuts announced earlier in the year. The consumer banking division of HSBC will focus on the UK, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, high-growth markets such as Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
and Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, and smaller countries where it has a leading market share.
August 1, 2011 "to align our U.S. business with our global network and meet the local and international needs of domestic and overseas clients", HSBC Holding Plc, agreed to sell 195 branches in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
and Connecticut
Connecticut
Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...
for around $1 billion to First Niagara Financial Group Inc. HSBC will also close 13 branches in Connecticut and New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
in 2012. The rest of HSBC's U.S. network will only be about half from a total 470 branches before divestments.
On August 9, 2011, [Capital One Financial Corp.] agreed to acquire HSBC's U.S. credit card business for $2.6 billion, netting HSBC Holdings an estimated after-tax profit of $2.4 billion. In September was announced that HSBC seeks to sell its general insurance business for around $1 billion. This is a part of Chief Executive Officer Stuart gulliver's plan to divest some assets.
Corporate profile
In February 2008, HSBC was named the world's most valuable banking brand by The Banker magazine. Not known for marked fluctuations in securities exchanges around the world relative to its rivals, HSBC is more well known in banking circles for its conservative and risk-averse approach in its business operations – a company tradition going back to the 19th century. In its technical management, however, HSBC has recently suffered a series of headline-making incidents in which some customer data were allegedly leaked or simply went missing. Although the consequences turned out to be small, the embarrassing effect on the group's image did not go unnoticed.As of 2 April 2008, according to Forbes magazine, HSBC was the fourth largest bank in the world in terms of assets ($2,348.98 billion), the second largest in terms of sales ($146.50 billion) and the largest in terms of market value ($180.81 billion). It was also the most profitable bank in the world with $19.13 billion in net income in 2007 (compared to Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
's $3.62 billion and Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
's $14.98 billion in the same period).
HSBC is the largest bank both in the United Kingdom and in Hong Kong and prints most of Hong Kong's local currency in its own name. Since the end of 2005, HSBC has been rated the largest banking group in the world by Tier 1 capital
Tier 1 capital
Tier 1 capital is the core measure of a bank's financial strength from a regulator's point of view. It is composed of core capital, which consists primarily of common stock and disclosed reserves , but may also include non-redeemable non-cumulative preferred stock...
.
The HSBC Group has a significant presence in each of the world's major financial markets, with the Americas, Asia Pacific and Europe each representing around one third of the business. With around 8,000 offices in 87 countries & territories, 210,000 shareholders, 300,000 staff and 128 million customers worldwide, HSBC arguably has the most international presence among the world's multinational banking giants.
The HSBC Group operates as a number of local banks around the world, which explains its advertising tagline
Tagline
A tagline is a variant of a branding slogan typically used in marketing materials and advertising. The idea behind the concept is to create a memorable phrase that will sum up the tone and premise of a brand or product , or to reinforce the audience's memory of a product...
"The World's Local Bank." In response to ongoing discussions about the survival strategies for banks, and the suggestion of "Living Wills" HSBC explains its structure as "separately incorporated and capitalised" the structure is based on a lead bank in each region, which has responsibility for the group's operations in that area, as listed below. For details of other group companies see :Category:HSBC.
HSBC is currently audited by one of the Big Four auditors
Big Four auditors
The Big Four are the four largest international professional services networks in accountancy and professional services, which handle the vast majority of audits for publicly traded companies as well as many private companies, creating an oligopoly in auditing large companies...
, KPMG
KPMG
KPMG is one of the largest professional services networks in the world and one of the Big Four auditors, along with Deloitte, Ernst & Young and PwC. Its global headquarters is located in Amstelveen, Netherlands....
. The HSBC and KPMG headquarters are adjacent to one another, with KPMG occupying 15 Canada Square. HSBC Main Building, Hong Kong where the CEO office is, also adjacent to KPMG office locate in Prince's Building
Prince's Building
The Prince's Building is an office tower and shopping centre located along Statue Square in Central, Hong Kong. Tenants include KPMG and PricewaterhouseCoopers.The name has been used for two structures in the same area....
.
Head office
The head office is in 8 Canada Square in Canary WharfCanary Wharf
Canary Wharf is a major business district located in London, United Kingdom. It is one of London's two main financial centres, alongside the traditional City of London, and contains many of the UK's tallest buildings, including the second-tallest , One Canada Square...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
. On Friday 25 September 2009 the company stated that while its head office would remain in London and the main regulator would continue to be the Financial Services Authority
Financial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
, the CEO would move from London to Hong Kong beginning on February 2010.
Latin America
Mexico HSBC Mexico SAHSBC Mexico
HSBC Mexico, S.A., the principal operating company of Group Financiero HSBC, S.A. de C.V., is one of Mexico’s four largest banking and financial service companies, with 1,400 branches and 5,200 ATMs. HSBC purchased Banco Internacional, S.A...
Brazil HSBC Bank Brazil SA, Banco Multiplo Argentina HSBC Bank Argentina SAHSBC Bank Argentina
HSBC Bank Argentina S.A. is the principal HSBC operating company in Argentina. The seventh-largest bank in the country, it provides a full range of banking and financial products and services, including commercial, consumer and corporate banking, to over 1.2 million customers.-Operations:HSBC...
Asia Pacific
Hong Kong The Hongkong and Shanghai Banking Corporation Ltd Hong Kong Hang Seng Bank LtdHang Seng Bank
Hang Seng Bank Limited is the second largest bank in Hong Kong. It is a listed company but it is majority owned by the HSBC Group via The Hongkong and Shanghai Banking Corporation. Hang Seng is also one of the constituent shares of the Hang Seng Index...
Mainland China HSBC Bank (China) Company Ltd Malaysia HSBC Bank Malaysia BerhadHSBC Bank Malaysia
HSBC Bank Malaysia Berhad was incorporate locally in Malaysia in 1994. It is part of the HSBC Group and is wholly owned by Hong Kong-based The Hongkong and Shanghai Banking Corporation Limited.-Malaysian banking:...
Australia HSBC Bank Australia LimitedMiddle East
Arab League HSBC Bank Middle East LtdHSBC Bank Middle East
HSBC Bank Middle East Limited is the largest and most widely represented international bank in the Middle East. The bank has received several awards in various categories.-History:...
Egypt HSBC Bank Egypt SAEHSBC Bank Egypt
HSBC Bank Egypt SAE is a multinational bank in Egypt, providing a wide range of banking and related financial services through a network of 100 branches and 20 mini bank units in Cairo, Alexandria, Sharm El Sheikh, Hurghada, Borg El Arab and 6th of October City.-History:HSBC Bank Egypt was...
Saudi Arabia The Saudi British BankSABB
SABB is an affiliate of the HSBC Group. SABB has a branch in London.-Services:SABB offers services in investment banking, commercial banking, private banking, and Amana Islamic Banking....
North America
United States HSBC Bank USA IncHSBC Bank USA
HSBC Bank USA, National Association, the American subsidiary of UK-based HSBC Holdings plc, is a bank with its operational head office in New York City and its nominal head office in McLean, Virginia . HSBC Bank USA, N.A...
United States HSBC Finance Corporation Canada HSBC Bank CanadaHSBC Bank Canada
HSBC Bank Canada, formerly the Hongkong Bank of Canada , is a bank in Canada that is part of British banking giant HSBC - one of the largest banking groups in the world. HSBC Canada is the seventh largest bank in Canada, with offices in every province except Prince Edward Island, and is the...
Europe
HSBC Bank plcHSBC Bank (Europe)
HSBC Bank plc is one of the four major clearing banks in the United Kingdom and is a wholly owned subsidiary of HSBC Holdings. The business ranges from the traditional High Street roles of personal finance and commercial banking, to private banking, consumer finance as well as corporate and...
Early Modern France HSBC France Germany HSBC Trinkaus und Burkhardt AG Malta HSBC Bank Malta plcHSBC Private Bank (UK) Ltd
HSBC Private Bank
HSBC Private Bank is the principal private banking business of the HSBC Group. The HSBC Private Banking Group's holding company is HSBC Private Banking Holdings S.A....
Group Service Centres
Offshoring
Offshoring describes the relocation by a company of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Even state governments employ 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
Data processing
Computer data processing is any process that a computer program does to enter data and summarise, analyse or otherwise convert data into usable information. The process may be automated and run on a computer. It involves recording, analysing, sorting, summarising, calculating, disseminating and...
and customer service
Customer service
Customer service is the provision of service to customers before, during and after a purchase.According to Turban et al. , “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer...
, but also internal software engineering
Software engineering
Software Engineering is the application of a systematic, disciplined, quantifiable approach to the development, operation, and maintenance of software, and the study of these approaches; that is, the application of engineering to software...
at Pune
Pune
Pune , is the eighth largest metropolis in India, the second largest in the state of Maharashtra after Mumbai, and the largest city in the Western Ghats. Once the centre of power of the Maratha Empire, it is situated 560 metres above sea level on the Deccan plateau at the confluence of the Mula ...
(India), Hyderabad (India), Vishakhapatnam (India), Kolkata
Kolkata
Kolkata , formerly known as Calcutta, is the capital of the Indian state of West Bengal. Located on the east bank of the Hooghly River, it was the commercial capital of East India...
(India), Guangzhou
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...
(China), Curitiba
Curitiba
Curitiba is the capital of the Brazilian state of Paraná. It is the largest city with the biggest economy of both Paraná and southern Brazil. The population of Curitiba numbers approximately 1.75 million people and the latest GDP figures for the city surpass US$61 billion according to...
(Brazil) and Kuala Lumpur
Kuala Lumpur
Kuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...
(Malaysia).
Chief Operating Officer Alan Jebson said in March 2005 that he would be very surprised if fewer 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).
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.
Curitiba
Curitiba is the capital of the Brazilian state of Paraná. It is the largest city with the biggest economy of both Paraná and southern Brazil. The population of Curitiba numbers approximately 1.75 million people and the latest GDP figures for the city surpass US$61 billion according to...
), The Czech Republic (Ostrava
Ostrava
Ostrava is the third largest city in the Czech Republic and the second largest urban agglomeration after Prague. Located close to the Polish border, it is also the administrative center of the Moravian-Silesian Region and of the Municipality with Extended Competence. Ostrava was candidate for the...
), India (Kolkata
Kolkata
Kolkata , formerly known as Calcutta, is the capital of the Indian state of West Bengal. Located on the east bank of the Hooghly River, it was the commercial capital of East India...
, Hyderabad, Bangalore
Bangalore
Bengaluru , formerly called Bengaluru is the capital of the Indian state of Karnataka. Bangalore is nicknamed the Garden City and was once called a pensioner's paradise. Located on the Deccan Plateau in the south-eastern part of Karnataka, Bangalore is India's third most populous city and...
, Visakhapatnam
Visakhapatnam
Visakhapatnam is a major sea port on the south east coast of India. With a population of approximately 1.7 million, it is the second largest city in the state of Andhra Pradesh and the third largest city on the east coast of India after Kolkata and Chennai. According to the history, the city was...
, Mumbai
Mumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...
, Gurgaon
Gurgaon
Gurgaon is the second largest city in the Indian state of Haryana. Gurgaon is the industrial and financial center of Haryana. It is located 30 km south of national capital New Delhi, about 10 kilometers from Dwarka Sub City and 268 km south of Chandigarh, the state capital...
and Pune
Pune
Pune , is the eighth largest metropolis in India, the second largest in the state of Maharashtra after Mumbai, and the largest city in the Western Ghats. Once the centre of power of the Maratha Empire, it is situated 560 metres above sea level on the Deccan plateau at the confluence of the Mula ...
), China (Shanghai, Guangzhou
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...
and Shenzhen
Shenzhen
Shenzhen is a major city in the south of Southern China's Guangdong Province, situated immediately north of Hong Kong. The area became China's first—and one of the most successful—Special Economic Zones...
), Malaysia (Kuala Lumpur
Kuala Lumpur
Kuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...
), Poland (Krakow
Kraków
Kraków also Krakow, or Cracow , is the second largest and one of the oldest cities in Poland. Situated on the Vistula River in the Lesser Poland region, the city dates back to the 7th century. Kraków has traditionally been one of the leading centres of Polish academic, cultural, and artistic life...
), Sri Lanka (Rajagiriya
Rajagiriya
Rajagiriya is one of the main residential and Commercial suburbs after Nugegoda in the Sri Jayawardenepura Kotte municipal limits. Rajagiriya is bordered by Borella and Ethul Kotte.-History:...
) and Philippines (Manila
Manila
Manila is the capital of the Philippines. It is one of the sixteen cities forming Metro Manila.Manila is located on the eastern shores of Manila Bay and is bordered by Navotas and Caloocan to the north, Quezon City to the northeast, San Juan and Mandaluyong to the east, Makati on the southeast,...
). The Malta trial for a UK high value call centre has resulted in a growing operation that country. An option under consideration is reported to be a processing centre in Vietnam to access the French skills of the population and therefore cut costs in the bank’s French operations.
On 27 June 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.
HSBC Private Bank
HSBC Private Bank is the group's private banking operation, providing private banking and trustee services to wealthy individuals and their families worldwide. The Private Bank has in excess of 60 offices worldwide, with the major centres being Miami, New York, London, Geneva and Hong Kong.HSBC Premier
HSBC Premier is the group's premium financial services product. The exact benefits and qualification criteria vary depending on country, but typically require deposits and investments of at least $100,000, £50,000, or €100,000. Alternatively those who have an individual annual income of at least £100,000 paid into their HSBC Premier Bank Account and are a customer of the bank's Independent Financial Advisory Service. Customers have a dedicated Premier Relationship Manager, global 24 hour access to call centres, free banking services and preferential rates. A HSBC Premier customer receives the HSBC Premier services in all countries that offer HSBC Premier, without having to meet that country's qualifying criteria.HSBC Advance
HSBC Advance is the group's product aimed at working professionals. The exact benefits and qualifications vary depending on country, but typically require a transfer of Salary of USD 1,500 or more every month or Maintain USD 25,000 of deposits in a Savings/Current Account or investments. Advantages include and may vary depending on country this include day-to-day banking services included but not limited to Platinum Credit Card, Advance ATM Card, Current Account and Savings Account. Protection plans and Financial Planning Services. A HSBC Advance customer enables the customer to open accounts in another country and transfer their credit history.HSBC Bank International
HSBC Bank InternationalHSBC Bank International
HSBC Bank International Limited is the offshore banking arm of the HSBC Group and is wholly owned by HSBC Bank plc, focusing on providing offshore solutions and cross border services to expatriates and migrants. It provides a full range of multi-currency personal banking services to a range of...
is the offshore bank
Offshore bank
An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction that provides financial and legal advantages. These advantages typically include:...
ing arm of the HSBC Group, focusing on providing offshore solutions and cross border services to expatriate
Expatriate
An expatriate is a person temporarily or permanently residing in a country and culture other than that of the person's upbringing...
s and migrants
Immigration
Immigration is the act of foreigners passing or coming into a country for the purpose of permanent residence...
. It provides a full range of multi-currency personal banking services to a range of customer segments, including a full internet banking and telephone banking service. Sometimes referred to as "HSBC Offshore", the business also offers independent financial planning, and has representative offices all over the world, often working alongside local HSBC operations in those regions.
HSBC Bank International originated from the business started by Midland Bank and is based in the Channel Islands
Channel Islands
The Channel Islands are an archipelago of British Crown Dependencies in the English Channel, off the French coast of Normandy. They include two separate bailiwicks: the Bailiwick of Guernsey and the Bailiwick of Jersey...
with further operations on the Isle of Man
Isle of Man
The Isle of Man , otherwise known simply as Mann , is a self-governing British Crown Dependency, located in the Irish Sea between the islands of Great Britain and Ireland, within the British Isles. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Lord of Mann is...
. Its operations in the Channel Islands are centred around its registered headquarters on the seafront in St Helier, Jersey
Jersey
Jersey, officially the Bailiwick of Jersey is a British Crown Dependency off the coast of Normandy, France. As well as the island of Jersey itself, the bailiwick includes two groups of small islands that are no longer permanently inhabited, the Minquiers and Écréhous, and the Pierres de Lecq and...
. Named 'HSBC House', the building comprises departments such as Premier, Global Funds & Investments, e-Business and a 24 hour 'Direct Banking Centre'.
HSBCnet
HSBCnet is a global service that caters to local business needs by offering specialised functionality for different regions worldwide.The system provides access to transaction banking functionality – ranging from payments and cash management to trade services features – as well as to research and analytical content from HSBC. It also includes foreign exchange and money markets trading functionality.
The system is used widely by HSBC's high-end corporate and institutional clients served variously by the bank's global banking and markets, commercial banking and global transaction banking divisions.
HSBCnet is also the brand under which HSBC markets its global e-commerce proposition to its corporate and institutional clients.
HFC Bank (UK Operation) is a wholly owned subsidiary, with 135 High Street branches in the UK selling loans to the "sub-prime" market. During 2007 and 2008, it has been trying to fend off a union recognition campaign by the Trade Union Unite.
HSBC Direct
HSBC Direct is a telephone/online direct banking operation which attracts customers through mortgages, accounts and savings. It was first launched in the USA in November 2005 and is now available in Britain, Canada, Taiwan, South Korea and France. Poland is launching business direct in September 2009. In the US, HSBC Direct is now part of HSBC AdvanceBrand and advertising
The group announced in November 1999 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.Logo
The hexagon symbol was originally adopted by The Hongkong and Shanghai Banking Corporation as its logo in 1983. It was developed from the bank’s house flagFlag
A flag is a piece of fabric with a distinctive design that is usually rectangular and used as a symbol, as a signaling device, or decoration. The term flag is also used to refer to the graphic design employed by a flag, or to its depiction in another medium.The first flags were used to assist...
, a white rectangle divided diagonally to produce a red hourglass shape. Like many other Hong Kong company flags that originated in the 19th century, and because of its founder's nationality, the design was based on the cross
Saltire
A saltire, or Saint Andrew's Cross, is a heraldic symbol in the form of a diagonal cross or letter ex . Saint Andrew is said to have been martyred on such a cross....
of Saint Andrew
Saint Andrew
Saint Andrew , called in the Orthodox tradition Prōtoklētos, or the First-called, is a Christian Apostle and the brother of Saint Peter. The name "Andrew" , like other Greek names, appears to have been common among the Jews from the 3rd or 2nd century BC. No Hebrew or Aramaic name is recorded for him...
. The logo was designed by graphic artist Henry Steiner
Henry Steiner
Henry Steiner is an Austrian graphic designer, best known for his corporate identity designs. He has created designs for some of the most identifiable brands, such as IBM, Hyatt Regency, Hilton Hotels, Dow Jones, HSBC, Standard Chartered, Unilever, and was commissioned to design the city's bank...
.
Sponsorship
Having sponsored the Jaguar RacingJaguar Racing
Jaguar Racing was a Formula One team that competed in the FIA Formula One World Championship from 2000 to 2004. It was formed from the purchase by Ford of Jackie Stewart's Stewart Grand Prix Formula One team in June 1999. Ford renamed the team Jaguar Racing as part of its global marketing...
Formula One
Formula One
Formula One, also known as Formula 1 or F1 and referred to officially as the FIA Formula One World Championship, is the highest class of single seater auto racing sanctioned by the Fédération Internationale de l'Automobile . The "formula" designation in the name refers to a set of rules with which...
team since the days of Stewart Grand Prix
Stewart Grand Prix
Stewart Grand Prix is a former Formula One constructor and racing team. The team was formed by three times Formula One champion Jackie Stewart and his son Paul Stewart in 1996. The team competed in F1, as the Ford works-supported team, for only three seasons, from 1997 to 1999...
, HSBC ended its relationship with the sport when Red Bull
Red Bull
Red Bull is an energy drink sold by the Austrian Red Bull GmbH, created in 1987 by the Austrian entrepreneur Dietrich Mateschitz. In terms of market share, Red Bull is the most popular energy drink in the world, with 3 billion cans sold each year. Dietrich Mateschitz was inspired by an already...
purchased Jaguar Racing from Ford
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
. HSBC has now switched its focus to golf, taking title sponsorship of events such as the HSBC World Match Play Championship
HSBC World Match Play Championship
The Volvo World Match Play Championship is the current name of an annual match play men's professional golf tournament. From 2009 the event has been played at the Finca Cortesín Golf Club in Casares near Málaga, Spain, having previously been played at Wentworth Club near London...
, HSBC Women's World Match Play Championship
HSBC Women's World Match Play Championship
The HSBC Women's World Match Play Championship was an LPGA Tour golf tournament that was played from 2005 through 2007. It was first played from June 30 to July 3, 2005 at Hamilton Farm Golf Club in Gladstone, New Jersey...
(now defunct), HSBC Champions
HSBC Champions
The WGC-HSBC Champions is a men's professional golf 72-hole tournament. It has been contested annually since 2005 in November at the Sheshan Golf Club in Shanghai, People's Republic of China. In April 2009 it was announced that the tournament had been awarded World Golf Championships status,...
and HSBC Women's Champions
HSBC Women's Champions
The HSBC Women's Champions is a golf tournament for professional female golfers that is part of the LPGA Tour. It was played for the first time in 2008 at the Tanah Merah Country Club in Singapore....
.
In football HSBC sponsors French club AS Monaco and Mexican club C.F. Pachuca, and in rugby league
Rugby league
Rugby league football, usually called rugby league, is a full contact sport played by two teams of thirteen players on a rectangular grass field. One of the two codes of rugby football, it originated in England in 1895 by a split from Rugby Football Union over paying players...
, HSBC sponsors Telford Raiders
Telford Raiders
Telford Raiders ARLFC are a rugby league club based in the town of Telford in Shropshire, England. Their first team plays in the Midlands Regional division of the Rugby League Conference and they have a development team in the Midlands Rugby League as well as an active junior development...
in the Rugby League Conference
Rugby League Conference
The Rugby League Conference , was a series of regionally based divisions of amateur rugby league teams spread throughout England, Scotland and Wales.The RLC was founded as the 10-team Southern Conference League in 1997, with teams from the southern midlands and the...
. In Australia, HSBC sponsors the New South Wales Waratahs
New South Wales Waratahs
The New South Wales Waratahs are an Australian rugby union football team, representing the majority of New South Wales in the Super 15 Super Rugby competition...
rugby team in the Super 15 rugby union
Rugby union
Rugby union, often simply referred to as rugby, is a full contact team sport which originated in England in the early 19th century. One of the two codes of rugby football, it is based on running with the ball in hand...
competition, as well as the Hawthorn Football Club
Hawthorn Football Club
The Hawthorn Football Club, nicknamed the Hawks, is a professional Australian rules football club in the Australian Football League . The club, founded in 1902, is the youngest of the Victorian-based teams in the AFL. The team play in Brown & Gold vertically striped guernseys...
in the Australian Football League
Australian Football League
The Australian Football League is both the governing body and the major professional competition in the sport of Australian rules football...
.
HSBC’s other sponsorships are mainly in the area of education, health and the environment. In November 2006, HSBC announced a $5 million partnership with SOS Children
SOS Children's Villages UK
SOS Children's Villages UK is an autonomous charity based in Cambridge in the United Kingdom and part of the international group SOS Children's Villages, the largest international charity group dedicated to the care of orphaned and abandoned children...
as part of Future First.
HSBC sponsors the Great Canadian Geography Challenge, which has had around 2 million participants in the past 12 years. Since 2001, HSBC has sponsored the Celebration of Light
Celebration of Light
The Celebration of Light is an annual musical fireworks competition in Vancouver, British Columbia, Canada. The first "Symphony of Fire" was held from July 25 to August 5 of 1990. The celebration is one of Vancouver's largest and most well known festivals...
, an annual musical fireworks competition in Vancouver, British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
, Canada. In 2007 HSBC announced it would be a sponsor of the National Hockey League's Vancouver Canucks
Vancouver Canucks
The Vancouver Canucks are a professional ice hockey team based in Vancouver, :British Columbia, Canada. They are members of the Northwest Division of the Western Conference of the National Hockey League . The Canucks play their home games at Rogers Arena, formerly known as General Motors Place,...
and Calgary Flames
Calgary Flames
The Calgary Flames are a professional ice hockey team based in Calgary, Alberta, Canada. They are members of the Northwest Division of the Western Conference of the National Hockey League . The club is the third major-professional ice hockey team to represent the city of Calgary, following the...
. HSBC has also sponsored a professional gaming team that was disbanded late 2007.
HSBC sponsored the 2009 British and Irish Lions tour to South Africa
2009 British and Irish Lions tour to South Africa
The 2009 British and Irish Lions Tour to South Africa was an international rugby union tour which took place in South Africa from May to July 2009....
.
HSBC is the official banking partner of the Wimbledon Tennis Championships, providing banking facilities on site and renaming the Road to Wimbledon junior event, as The HSBC Road to Wimbledon National 14 and Under Challenge.
HSBC was named the 'Official Banking Partner' of The Open Championship
The Open Championship
The Open Championship, or simply The Open , is the oldest of the four major championships in professional golf. It is the only "major" held outside the USA and is administered by The R&A, which is the governing body of golf outside the USA and Mexico...
, in a five year deal announced in 2010.
Customer groups
HSBC splits its business into four distinct groups:Retail Banking and Wealth Management
HSBC provides more than 100 million customers worldwide with a full range of personal financial services, including currentDemand account
A transactional account is a deposit account held at a bank or other financial institution, for the purpose of securely and quickly providing frequent access to funds on demand, through a variety of different channels....
and savings account
Savings account
Savings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money . These accounts let customers set aside a portion of their liquid assets while earning a monetary return...
s, mortgage loan
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
s, car financing, insurance, credit cards, loans, pensions and investments.
Retail Banking and Wealth Management was previously referred to as Personal Financial Services. This rename was announced during HSBC's 2011 Investor Day.
Commercial banking
HSBC provides financial services to small, medium-sized and middle-market enterprises. The group has more than 3 million of such customers, including sole proprietorsSole proprietorship
A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. The owner receives all profits and has unlimited responsibility for...
, partnerships, clubs and associations
Voluntary association
A voluntary association or union is a group of individuals who enter into an agreement as volunteers to form a body to accomplish a purpose.Strictly speaking, in many jurisdictions no formalities are necessary to start an association...
, incorporated businesses and publicly quoted companies.
Global banking and markets
Global Banking and Markets is the investment banking arm of HSBC. It provides investment banking and financing solutions for corporate and institutional clients, including corporate banking, investment banking, trade services, payments and cash management, and leveraged acquisition finance. It provides services in credit and rates, foreign exchange, money markets and securities services, in addition to asset management services.Global Banking and Markets has offices in more than 60 countries and territories worldwide, and describes itself as "emerging markets-led and financing-focused".
Global Banking and Markets is currently being led by former fixed-income trader Samir Assaf
Samir Assaf
Samir Assaf is the CEO of HSBC Global Banking & Markets.Student of the Lebanese Maronite Father's College at Achrafieh, Samir Assaf moved to France during the Lebanese civil war in order to finish his studies...
, who was promoted from global head of markets on 10 December 2010.
Private banking
HSBC Private Bank is the marketing name for the private banking business conducted by the principal private banking subsidiaries of the HSBC Group worldwide. HSBC Private Bank, together with the private banking activities of HSBC Trinkaus, known collectively as Group Private Banking, provides services to high net worth individual
High net worth individual
A high-net-worth individual is a person with a high net worth. In the private banking business, these individuals typically are defined as having investable assets in excess of US$1 million. As explained below, the U.S...
s and their families through 93 locations in some 42 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. As of December 2007, profits before tax were US$1,511 million and combined client assets under management were US$494 billion.
In September 2008, HSBC announced that it would combine its two Swiss private banks under one brand name in 2009, with HSBC Guyerzeller and HSBC Private Bank to be merged into one legal entity
Legal personality
Legal personality is the characteristic of a non-human entity regarded by law to have the status of a person....
, under the newly appointed CEO of HSBC Private Bank, Alexandre Zeller.
See also
- HSBC BuildingHSBC BuildingSeveral buildings carry the HSBC name, and some are often referred to as HSBC Building, HSBC Tower or both:-Building:* HSBC Main Building, Hong Kong - 1 Queen's Road Central, Hong Kong...
s - List of banks in the United Kingdom
- List of buildings and structures in Hong Kong
- Primary dealersPrimary dealersPrimary dealer is a formal designation of a firm as a market maker of government securities. Primary dealer systems are present in many countries including Canada, France, Italy, Spain, the United Kingdom, and the United States...