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HSBC Bank (Europe)
Encyclopedia
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 investment banking. Across all brands the bank operates some 1800 sites in the UK.
The UK headquarters of HSBC are at HSBC Tower, 8 Canada Square in the Canary Wharf
area of east London. This building is also home to HSBC Group's headquarters, and houses some 8,000 staff over 42 levels.
HSBC Bank Plc is the only one of Britain's big five banks to hold more deposits than loans (loan:deposit ratio of 90%). This has led to the bank being seen as a less risky proposition than the other banks by investors and customers, as it is able to fully fund its own operations. It has also contributed to the company's share price maintaining value throughout the credit crunch, unlike other banks in the market.
in 1987, and a strong working relationship developed. In 1992, HSBC Holdings plc acquired full ownership of Midland Bank. It was one of the largest acquisitions in banking history, giving HSBC the major foothold in Europe
that it needed to complement its existing business in Asia
and the Americas
. Midland Bank was renamed HSBC Bank in 1999 as part of the adoption of the HSBC brand throughout the Group.
, with a much smaller presence in Scotland
and Northern Ireland
where local banks tend to dominate. Branches are undergoing a rolling program of refurbishment to improve the 'retail experience' as the bank puts it, including the rebranding of branches as 'stores' and the inclusion of more open areas for staff to meet customers, as well as HSBC Live, a radio station specifically produced for the bank by media company Immedia in Newbury, Berkshire
.
In April 2008 HSBC launched a campaign selling mortgages. This was seen as a risky move by media and HSBC staff due to their previous non-plus attitude building on their 3% market share of the mortgage market. While other banks and building societies felt the effects of the 'credit crunch', HSBC, bolstered by a favourable savings to lending ratio, unveiled a mortgage rate matching deal that would offer non-HSBC mortgage customers the ability to match their current mortgage rate.
(Islamic) law, which prohibits the charging or payment of interest. The range now includes a bank account and home insurance policy (Takaful
) as well as home finance.
supermarket chain, they traded as Your bank at Morrisons and offer a range of financial services, including an exclusive credit card
and savings account
. The agreement with Morrisons to provide this service expired in 2009 and all Your Bank outlets ceased trading before the end of 2009.
, the pioneer of the revolutionary concept of telephone banking
, with a person-to-person service available 24 hours a day, 365 days a year. It now offers internet banking as well and serves more than one million customers. Over its first 15 years, first direct established a position as the United Kingdom's most recommended bank.
as consumer finance business in the UK in 1973, it went on to became one of the largest consumer finance companies in the UK before Household was acquired by HSBC in 2003. HFC Bank provides retail credit to many leading national retailers and is the largest point of sale loan provider in the UK. The business focuses on retail finance, both through branches and direct channels, as well as co-branded and loyalty credit cards. Some of the key brands are the recently relaunched Beneficial Finance (with around 160 branches), marbles and The GM Card. Today HFC Bank has around 3.5 million customers.
Card contract.
, HSBC Turkey
, HSBC Bank International and HSBC Private Bank in Europe lead to HSBC Bank plc.
HSBC Bank Armenia cjsc offers a wide range of products and services to individual as well as corporate customers in Armenia and abroad. The bank is the member of SWIFT and Bankmail payment systems.
since the takeover of Credit Commercial de France
, primarily operating under the HSBC brand. 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.
opened its doors for business in Tbilisi
, in June 2008. HSBC Bank Georgia
jsc is a locally-licenced joint venture between the HSBC Group, which has 70% ownership, and members of overseas businesses who hold 30%.
, reinsurance
, securities services and a newly established consumer finance
business. The fund management business had assets in excess of US$
20bn .
. 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.
is the Swiss
operating subsidiaries of the group's Private Banking business, with 20 locations in the country. Much of the private banking business takes a lead from work done in Switzerland, with a total of 74 locations around the world operating solely for private banking business.
is now the fifth largest private bank in Turkey
, having expanded through internal financing and via acquisition
since entering the market in 1990. The bank has a network of around 190 branches, offering products and services to corporate, commercial and personal customers, both under the HSBC brand as well as the Advantage brand.
and in August HSBC reversed their policy, freezing overdraft charges to recent graduates and pledging to repay charges deducted in August while holding talks with the National Union of Students.
In February 2011 HSBC sent a letter dated February 11 to an unknown number of recipients, stating that they were "writing to inform you of the potential compromise of some of your former account information with us." The date and extent of the loss were not given; however, HSBC offered a year's enrollment to ITAC Sentinel and advised vigilance for 12 to 24 months, as well as recommending contacting the three major Credit Bureaus to place a Fraud Alert on the credit profile.
wrestler. The campaign upset members of Britain's Japanese
community who claimed the man's skin tone was darkened and makeup was applied to narrow his eyes. HSBC denied making the model appear to be from a specific country or region but admitted makeup was applied and skin tone was tanned.
released a report documenting the extent to which HSBC and other UK commercial banks invest in, provide banking services for and make loans to arms companies. The charity writes in its report that HSBC holds shares in the global arms industry totally £450.6 million, and serves as principal banker for Meggitt
, the UK's largest arms company. The report also details HSBC's dealings with known producers of cluster munitions and depleted uranium
.
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...
and is a wholly owned subsidiary of HSBC Holdings
HSBC
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...
. 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 investment banking. Across all brands the bank operates some 1800 sites in the UK.
The UK headquarters of HSBC are at HSBC Tower, 8 Canada Square in the Canary Wharf
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...
area of east London. This building is also home to HSBC Group's headquarters, and houses some 8,000 staff over 42 levels.
HSBC Bank Plc is the only one of Britain's big five banks to hold more deposits than loans (loan:deposit ratio of 90%). This has led to the bank being seen as a less risky proposition than the other banks by investors and customers, as it is able to fully fund its own operations. It has also contributed to the company's share price maintaining value throughout the credit crunch, unlike other banks in the market.
Midland joins the HSBC Group
The Hongkong and Shanghai Banking Corporation acquired a 14.9 per cent equity interest in Midland BankMidland 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 1987, and a strong working relationship developed. In 1992, HSBC Holdings plc acquired full ownership of Midland Bank. It was one of the largest acquisitions in banking history, giving HSBC the major foothold in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
that it needed to complement its existing business in Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
and the Americas
Americas
The Americas, or America , are lands in the Western hemisphere, also known as the New World. In English, the plural form the Americas is often used to refer to the landmasses of North America and South America with their associated islands and regions, while the singular form America is primarily...
. Midland Bank was renamed HSBC Bank in 1999 as part of the adoption of the HSBC brand throughout the Group.
UK banking
Under the HSBC brand the bank maintains a network of around 1500 branches throughout England and WalesEngland and Wales
England and Wales is a jurisdiction within the United Kingdom. It consists of England and Wales, two of the four countries of the United Kingdom...
, with a much smaller presence in Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
and Northern Ireland
Northern Ireland
Northern Ireland is one of the four countries of the United Kingdom. Situated in the north-east of the island of Ireland, it shares a border with the Republic of Ireland to the south and west...
where local banks tend to dominate. Branches are undergoing a rolling program of refurbishment to improve the 'retail experience' as the bank puts it, including the rebranding of branches as 'stores' and the inclusion of more open areas for staff to meet customers, as well as HSBC Live, a radio station specifically produced for the bank by media company Immedia in Newbury, Berkshire
Newbury, Berkshire
Newbury is a civil parish and the principal town in the west of the county of Berkshire in England. It is situated on the River Kennet and the Kennet and Avon Canal, and has a town centre containing many 17th century buildings. Newbury is best known for its racecourse and the adjoining former USAF...
.
In April 2008 HSBC launched a campaign selling mortgages. This was seen as a risky move by media and HSBC staff due to their previous non-plus attitude building on their 3% market share of the mortgage market. While other banks and building societies felt the effects of the 'credit crunch', HSBC, bolstered by a favourable savings to lending ratio, unveiled a mortgage rate matching deal that would offer non-HSBC mortgage customers the ability to match their current mortgage rate.
HSBC Amanah
In mid-2003 HSBC became the first UK High Street lender to offer homebuying products in compliance with ShariaSharia
Sharia law, is the moral code and religious law of Islam. Sharia is derived from two primary sources of Islamic law: the precepts set forth in the Quran, and the example set by the Islamic prophet Muhammad in the Sunnah. Fiqh jurisprudence interprets and extends the application of sharia to...
(Islamic) law, which prohibits the charging or payment of interest. The range now includes a bank account and home insurance policy (Takaful
Takaful
Takaful is an Islamic insurance concept which is grounded in Islamic muamalat , observing the rules and regulations of Islamic law. This concept has been practised in various forms for over 1400 years...
) as well as home finance.
HSBC at Morrisons
HSBC operated a number of outlets in supermarkets owned by the MorrisonsMorrisons
Wm Morrison Supermarkets plc is the fourth largest chain of supermarkets in the United Kingdom, headquartered in Bradford, West Yorkshire, England. The company is usually referred to and is branded as Morrisons formerly Morrison's, and it is part of the FTSE 100 Index of companies...
supermarket chain, they traded as Your bank at Morrisons and offer a range of financial services, including an exclusive credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
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...
. The agreement with Morrisons to provide this service expired in 2009 and all Your Bank outlets ceased trading before the end of 2009.
first direct
In 1989 the Midland Bank launched first directFirst Direct
First Direct is a telephone and internet-based retail bank in the United Kingdom, a division of HSBC Bank plc. First Direct has headquarters in Leeds, West Yorkshire, England, and has 1.16 million customers....
, the pioneer of the revolutionary concept of telephone banking
Telephone banking
Telephone banking is a service provided by a financial institution, which allows its customers to perform transactions over the telephone.Most telephone banking services use an automated phone answering system with phone keypad response or voice recognition capability...
, with a person-to-person service available 24 hours a day, 365 days a year. It now offers internet banking as well and serves more than one million customers. Over its first 15 years, first direct established a position as the United Kingdom's most recommended bank.
HFC Bank
Household International established HFC BankHSBC 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...
as consumer finance business in the UK in 1973, it went on to became one of the largest consumer finance companies in the UK before Household was acquired by HSBC in 2003. HFC Bank provides retail credit to many leading national retailers and is the largest point of sale loan provider in the UK. The business focuses on retail finance, both through branches and direct channels, as well as co-branded and loyalty credit cards. Some of the key brands are the recently relaunched Beneficial Finance (with around 160 branches), marbles and The GM Card. Today HFC Bank has around 3.5 million customers.
Other brands
As a result of the Household acquisition, the UK group gained expertise allowing it to enter joint ventures and contracts with more high street names, such as taking over Marks and Spencer Money on a partnership basis in 2004 and the John Lewis PartnershipJohn Lewis Partnership
The John Lewis Partnership is an employee-owned UK partnership which operates John Lewis department stores, Waitrose supermarkets and a number of other services...
Card contract.
European operations
Through various acquisition deals, including some inside the HSBC Group for reorganisational purposes HSBC Bank plc has become the regional headquarters for Europe. This means the lines of authority from across Europe for such entities as HSBC France, HSBC Trinkaus, HSBC Bank Malta plcHSBC Bank Malta
HSBC Bank Malta plc is the largest bank in Malta and a subsidiary of HSBC. It is the former Mid-Med Bank and the second-oldest bank in Malta. HSBC's Malta headquarters are at 116 Archbishop Street, Valletta...
, HSBC Turkey
HSBC Bank (Turkey)
HSBC Bank A.Ş., the Turkey subsidiary of the HSBC Group, is a bank with its head office in Istanbul.-History:HSBC Bank A.Ş. was established as Midland Bank A.Ş. in 1990. It was the subsidiary of Midland Bank and was renamed HSBC Bank A.Ş. in 1999. In October 2001, HSBC Bank A.Ş...
, HSBC Bank International and HSBC Private Bank in Europe lead to HSBC Bank plc.
Armenia
The Bank was established as a closed joint stock company under the name Midland Armenia Bank J.S.C. on 1996 and has been renamed into HSBC Bank Armenia cjsc on 1999. The bank is a joint venture between the HSBC Group, which has a 70% ownership, and members of overseas Armenian businesses with 30% ownership. It is one of the leading banks in the foreign exchange market.HSBC Bank Armenia cjsc offers a wide range of products and services to individual as well as corporate customers in Armenia and abroad. The bank is the member of SWIFT and Bankmail payment systems.
Czech Republic
HSBC Bank plc is undertaking a significant expansion in Eastern and Central Europe, with the Czech Republic the first country to offer Personal Financial Services. The operations are focused on HSBC Premier.France
HSBC France operates around 800 branches in FranceFrance
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
since the takeover of Credit 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....
, primarily operating under the HSBC brand. HSBC France is now the HSBC Group’s lead bank in the Eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
, focusing on certain capital market products for a global audience, and high net worth and international business in France.
Georgia
HSBC Bank GeorgiaHSBC Bank Georgia
HSBC Bank Georgia opened its doors for business in Tbilisi, in June 2008. HSBC Bank Georgia jsc is a locally-licenced joint venture between the HSBC Group, which has 70% ownership, and members of overseas businesses who hold 30%....
opened its doors for business in Tbilisi
Tbilisi
Tbilisi is the capital and the largest city of Georgia, lying on the banks of the Mt'k'vari River. The name is derived from an early Georgian form T'pilisi and it was officially known as Tiflis until 1936...
, in June 2008. HSBC Bank Georgia
HSBC Bank Georgia
HSBC Bank Georgia opened its doors for business in Tbilisi, in June 2008. HSBC Bank Georgia jsc is a locally-licenced joint venture between the HSBC Group, which has 70% ownership, and members of overseas businesses who hold 30%....
jsc is a locally-licenced joint venture between the HSBC Group, which has 70% ownership, and members of overseas businesses who hold 30%.
Germany
HSBC Trinkaus & Burkhardt AG 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.Ireland
HSBC Bank plc and a number of subsidiaries have operations in insuranceInsurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
, reinsurance
Reinsurance
Reinsurance is insurance that is purchased by an insurance company from another insurance company as a means of risk management...
, securities services and a newly established consumer finance
Consumer finance
Alternative financial services in the United States refers to a particular type of financial service, namely sub-prime lending by non-bank financial institutions. This branch of the financial services industry is more extensive in the United States than in some other countries, because the major...
business. The fund management business had assets in excess of US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
20bn .
Malta
HSBC Bank Malta plc is the largest banks in MaltaMalta
Malta , officially known as the Republic of Malta , is a Southern European country consisting of an archipelago situated in the centre of the Mediterranean, south of Sicily, east of Tunisia and north of Libya, with Gibraltar to the west and Alexandria to the east.Malta covers just over in...
. 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.
Switzerland
HSBC Private BankHSBC 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....
is the Swiss
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
operating subsidiaries of the group's Private Banking business, with 20 locations in the country. Much of the private banking business takes a lead from work done in Switzerland, with a total of 74 locations around the world operating solely for private banking business.
Turkey
HSBC Bank A.S.HSBC Bank (Turkey)
HSBC Bank A.Ş., the Turkey subsidiary of the HSBC Group, is a bank with its head office in Istanbul.-History:HSBC Bank A.Ş. was established as Midland Bank A.Ş. in 1990. It was the subsidiary of Midland Bank and was renamed HSBC Bank A.Ş. in 1999. In October 2001, HSBC Bank A.Ş...
is now the fifth largest private bank in 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...
, having expanded through internal financing and via acquisition
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
since entering the market in 1990. The bank has a network of around 190 branches, offering products and services to corporate, commercial and personal customers, both under the HSBC brand as well as the Advantage brand.
Sudden withdrawal of graduate overdrafts
In July 2007, HSBC suddenly withdrew its interest-free overdrafts for graduates. Students graduating that year discovered that they were to face unexpected bills of up to £140 a year. Students mobilised protests using the social networking website FacebookFacebook
Facebook is a social networking service and website launched in February 2004, operated and privately owned by Facebook, Inc. , Facebook has more than 800 million active users. Users must register before using the site, after which they may create a personal profile, add other users as...
and in August HSBC reversed their policy, freezing overdraft charges to recent graduates and pledging to repay charges deducted in August while holding talks with the National Union of Students.
Data loss
In April 2008 HSBC confirmed the loss of unencrypted data disks containing life insurance policy details for 370,000 customers.In February 2011 HSBC sent a letter dated February 11 to an unknown number of recipients, stating that they were "writing to inform you of the potential compromise of some of your former account information with us." The date and extent of the loss were not given; however, HSBC offered a year's enrollment to ITAC Sentinel and advised vigilance for 12 to 24 months, as well as recommending contacting the three major Credit Bureaus to place a Fraud Alert on the credit profile.
Cultural insensitivity
In 2008 HSBC were accused of 'cultural insensitivity' in an advertising campaign featuring an overweight white man dressed to look like a SumoSumo
is a competitive full-contact sport where a wrestler attempts to force another wrestler out of a circular ring or to touch the ground with anything other than the soles of the feet. The sport originated in Japan, the only country where it is practiced professionally...
wrestler. The campaign upset members of Britain's Japanese
Japanese people
The are an ethnic group originating in the Japanese archipelago and are the predominant ethnic group of Japan. Worldwide, approximately 130 million people are of Japanese descent; of these, approximately 127 million are residents of Japan. People of Japanese ancestry who live in other countries...
community who claimed the man's skin tone was darkened and makeup was applied to narrow his eyes. HSBC denied making the model appear to be from a specific country or region but admitted makeup was applied and skin tone was tanned.
Links to the arms trade
In December 2008 the British anti-poverty charity War on WantWar on Want
War on Want is an anti-poverty charity based in London, England. It seeks to highlight the needs of poverty-stricken areas around the world and lobbies governments and international agencies to tackle problems as well as raising public awareness of the concerns of developing nations while...
released a report documenting the extent to which HSBC and other UK commercial banks invest in, provide banking services for and make loans to arms companies. The charity writes in its report that HSBC holds shares in the global arms industry totally £450.6 million, and serves as principal banker for Meggitt
Meggitt
Meggitt PLC is a leading British-based engineering business specialising in aerospace equipment. It has its headquarters at Bournemouth Airport in Dorset. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.-History:...
, the UK's largest arms company. The report also details HSBC's dealings with known producers of cluster munitions and depleted uranium
Depleted uranium
Depleted uranium is uranium with a lower content of the fissile isotope U-235 than natural uranium . Uses of DU take advantage of its very high density of 19.1 g/cm3...
.