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HSBC Holdings plc

<tr><td colspan="2" style="text-align:center; padding:16px 0 16px 0;">Image:Hsbc.png</td></tr>

Type Public (LSE: HSBA, SEHK: 005, NYSE: HBC, Euronext: HSBC, BSX:


Founded Hong Kong (1865)

<tr><th style="text-align:right; padding-right:0.75em;">Founder</th><td>Thomas Sutherland</td></tr>

Headquarters Image:Flag of the United Kingdom.svg HSBC Tower, London, United Kingdom

<tr><th style="text-align:right; padding-right:0.75em;">Key people</th><td>Stephen Green, Chairman
Michael Geoghegan, CEO</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Industry</th><td>Finance and Insurance</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Products</th><td>Financial Services</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Revenue</th><td>Image:Green Arrow Up.svg $61.7 billion USD (2005) [1]</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Employees</th><td>284,000</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Subsidiaries</th><td>HSBC Bank plc, Hongkong and Shanghai Banking Corporation, HSBC Bank USA, HSBC Mexico, HSBC Bank Brasil, HSBC Finance</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Slogan</th><td>The world's local bank</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Website</th><td></td></tr>

HSBC Holdings plc (LSE: HSBA, SEHK: 005, NYSE: HBC, Euronext: HSBC, BSX: 1077223879) is one of the largest banking groups in the world, ranked the fifth-largest company and third-largest banking company in the world in Forbes Global 2000. Its head office is located in the HSBC Tower in London's Canary Wharf. The group is named after its founding member, the Hongkong and Shanghai Banking Corporation, a bank established by Thomas Sutherland, a Scot, to finance British trade in the Far East in 1865.

The bank is the largest corporation in the world in terms of assets <ref> </ref>(As of Jun 30, $1.74 trillion while Citigroup reported $1.63 trillion).<ref></ref> It reports its results in United States dollars since 80% of its earnings originate from outside the United Kingdom. Nearly 22% of its earnings are from operations in Hong Kong, where it was headquartered until 1991. It is the largest bank in Hong Kong, and at the end of 2004 it was the third largest banking group in the world by Tier 1 capital. <ref></ref>

The HSBC logo, known as the Hexagon, is derived from the Hongkong and Shanghai Banking Corporation’s 19th century house flag, itself derived from the Scottish flag which is the angular cross that Saint Andrew (the patron saint of Scotland) was crucified upon.

As of 2005 Michael Geoghegan, the company's CEO, was earning over £700,000.00 (over 1 million US dollars) per year, and the chairman Sir John Bond, who retired in 2006, was earning 1.8 million US dollars. HSBC made record profits in the 2004-2005 year earning over 12 billion GBP or more than 20 billion US dollars.


[edit] Customer groups

HSBC splits its business into four distinct groups, on a global basis:

[edit] Personal Financial Services

HSBC provides more than 100 million customers world-wide with a full range of personal financial services, including current and savings accounts, mortgages, car financing, insurance, credit cards, loans, pensions and investments. The Consumer Finance group facilitates point of sale credit to consumers, and lends money and provides related services to meet the financial needs of everyday people.

[edit] Commercial Banking

HSBC provides financial services to small, medium-sized and middle-market enterprises. The group has almost 2.5 million of such customers, including sole proprietors, partnerships, clubs and associations, incorporated businesses and publicly quoted companies.

[edit] Corporate, Investment Banking and Markets

This customer group provides tailored financial services to corporate and institutional clients. Business lines comprise Global Banking, Global Markets, Global Research and Global Transaction Banking.

[edit] Private Banking

Private Banking provides financial services to high net worth individuals and their families in 68 cities. Over the last five years, acquired companies such as Republic New York Corporation, Safra Republic Holdings and The Bank of Bermuda have been integrated into HSBC’s private banking business

[edit] Strategy

[edit] Managing for Value 1998-2003

Managing for Value was the strategy followed by the group between 1998 and 2003.

[edit] Managing for Growth 2003-2008

HSBC launched Managing for Growth at the end of 2003. This is a strategic plan that provides a blueprint for growth and development. HSBC aims to be the world’s leading financial services company, defined as being preferred, admired, dynamic, and recognised for giving customers a fair deal.

  • Brand: to make HSBC and its hexagon symbol one of the world’s leading brands for customer experience and corporate social responsibility;
  • Personal Financial Services: drive growth in key markets and through appropriate channels to make HSBC the strongest global player in personal financial services;
  • Consumer Finance: extend the reach of this business to existing customers through a wider product range, and penetrate new markets;
  • Commercial Banking: utilise HSBC’s international customer base through effective relationship management and improved product offerings in all the Group’s markets;
  • Corporate, Investment Banking and Markets: accelerate growth by enhancing capital markets and advisory capabilities focused on client service in defined sectors where HSBC has critical relevance and strength;
  • Private Banking: serve the Group’s highest value personal clients around the world;
  • People: attract, develop and motivate HSBC’s staff, rewarding success and rejecting mediocrity; and
  • TSR: fulfill HSBC’s TSR target by achieving strong competitive performances in earnings per share growth and efficiency.

[edit] Local Operations

The HSBC Group operates as a number of local banks around the world. Outlined below are operations in countries which represented profit before tax greater than US$50 million.<ref> Presentation by Douglas Flint, Group Finance Director at the UBS 2006 Global Financial Services Conference in New York on 15 May 2006</ref> For details of other group companies see Category:HSBC.

[edit] Americas

  • Image:Flag of Bermuda.svg The Bank of Bermuda Limited was acquired by HSBC in February 2004. Founded in 1889, it is a leading provider of fund administration, trust, custody, asset management and banking services, since the acquisition the group has focused its global efforts in some areas of these services on the island.
HSBC sign on a branch.

[edit] Asia Pacific

Image:Bund at night.jpg
The Hongkong and Shanghai Banking Corporation building on The Bund (with the round dome, currently houses the Shanghai Pudong Development Bank).
  • Image:Flag of Malaysia.svg HSBC Bank Malaysia Berhad traces its history back to the opening of the first HSBC office in Penang in 1884. The bank later became an issuer of currency notes for the Malaysian government. A gradual expansion programme resulted in the bank’s incorporation, the first foreign institution to do so in Malaysia in 1994. The bank today provides a full range of personal and commercial financial services.

[edit] Europe

Image:Hsbc 1.jpg
UK & World headquarters at 8 Canada Square.
  • Image:Flag of France.svg HSBC France SA operates around 800 branches in 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.
  • Image:Flag of Switzerland.svg HSBC Private Bank (Suisse) SA is the Swiss operating subsidiary of the group's Private Banking business, with 12 locations in the country. Much of the private banking business takes a lead from work done in Switzerland, with a total of 74 locations around the world operating solely for private banking business.
  • Image:Flag of Turkey.svg HSBC Bank AS is now the fifth largest private bank in Turkey, having expanded organically and via acquisition since entering the market in 1990. The bank has a network of around 190 branches, offering products and services to corporate, commercial and personal customers, both under the HSBC brand as well as the Advantage brand.

[edit] Middle East and Africa

  • Image:Flag of Egypt.svg HSBC Bank Egypt SAE was founded in 1982, and rebranded as HSBC in April 2001 after HSBC lifted its ownership stake from 40% to 94.5%. HSBC Bank Egypt is one of the largest multinationals and fastest growing banks in Egypt, providing a comprehensive range of banking and related financial services through a network of 22 branches.

[edit] Global product lines and programmes

[edit] Group Service Centres

As a cost saving measure HSBC is offshoring processing work to lower cost economies in order to reduce the cost of providing services in developed countries. These locations take on work such as data processing and customer service, but also internal software engineering at Pune (India), Guangzhou (China) and in Curitiba (Brazil).

The BBC quotes Chief Operating Officer, Alan Jebson in March 2005, as saying he would be very surprised if less than 25,000 people were working in the centres over the next three years: “I don’t have a precise target but I would be surprised if we had less than 15 (global service centres) in three years’ time”. He went on to say that each centre cost the bank from $20m to $30m to set up, but that for every job moved the bank saves about $20,000 (£10,400).<ref></ref>

The BBC go on to explain how trade unions, particularly in the US and UK, blame these centres for job losses in developed countries, and also for the effective imposition of wage caps on their members.

Currently centres exist in six countries, in Brazil in Curitiba, in India in Hyderabad, Bangalore, Visakhapatnam, Mumbai, Kolkata and Pune, in China in Shanghai, Guangzhou and Shenzhen, in Kuala Lumpur (Malaysia), Colombo (Sri Lanka) and Manila (Philippines). There is also a trial going on in Malta to asses the possibility of offshoring a UK high value call centre. 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 operation.

On June 27th 2006, HSBC reported that a "small number" of customers had suffered from fraud totalling £233,000 after an employee at the Bangalore call centre supplied confidential customer information to fraudsters.<ref></ref>

[edit] HSBC Premier

The group has HSBC Premier as its premium financial services product - the brand name is used in many market places around the world, however the exact benefits and qualification criteria vary. Broadly customers have a dedicated Relationship Manager, global 24 hour access to Premier call centres, concierge services and preferential rates.

[edit] HSBC Bank International

HSBC Bank International Limited is the offshore banking arm of the HSBC Group, it focuses on providing offshore solutions and cross border services to expatriates and migrants. It originated from the business started by Midland Bank and is based in the Channel Islands with further operations on the Isle of Man. From 2007, account charges will be increased to £20 a month unless more than £25,000 is held in the account. [2]

[edit] HSBCnet

Corporate, Investment Banking and Markets has HSBCnet ( as its online brand presence, having originated as the name for the new corporate internet banking system.

[edit] Brand and Advertising

The group announced in November 1998 that the HSBC brand and the hexagon symbol would be adopted as the unified brand in all the markets where HSBC operates, with the aim of enhancing recognition of the Group and its values by customers, shareholders and staff throughout the world.

[edit] Hexagon symbol

This was originally adopted by the Hongkong and Shanghai Banking Corporation as its logo in 1983. It was developed from the bank’s house flag, a white rectangle divided diagonally to produce a red hourglass shape. Like many other Hong Kong company flags that originated in the 19th century, the design was based on the cross of Saint Andrew.

Image:Webber usgp 2004.jpg
The 2004 Jaguar car, being driven by Mark Webber.

[edit] Sponsorship

Having sponsored the Jaguar Racing Formula One team since the days of Stewart Grand Prix, HSBC ended its relationship with the sport when Red Bull purchased Jaguar Racing from Ford. HSBC has now switched its focus to golf, taking title sponsorship of events such as the HSBC World Match Play Championship, HSBC Women’s World Match Play Championship and HSBC Champions.

In football HSBC sponsor French club AS Monaco.

In Rugby League HSBC sponsor Telford Raiders in the Rugby League Conference.

In Australia, HSBC sponsors the New South Wales Waratahs rugby team in the Super 14 competition, as well as the Hawthorn Football Club in the Australian Football League.

In the United States, HSBC owns the naming rights to the home arena of the Buffalo Sabres until 2026, the team plays in the North American National Hockey League.

HSBC’s other sponsorships are mainly in the area of education, health and the environment. They have an educational foundation and have recently (Nov 2006) announced a $5m partnership with SOS Children as part of Future First

[edit] Slogan

Since the global adoption of the HSBC brand the following strap lines have been used:
1999: Your world of financial services
2002: The world’s local bank

[edit] History of HSBC Holdings plc

Image:HSBC Hong Kong Headquarters.jpg
The Hong Kong & Asia Pacific headquarters of HSBC.

For the history of the HSBC Group prior to the founding of HSBC Holdings plc in 1991 see Hongkong and Shanghai Banking Corporation.

[edit] Notable current and former employees

[edit] Business

[edit] Other

[edit] See also

[edit] External links

[edit] Articles

[edit] References



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