A company report
- Pasang Yangji Sherpa
Grade 11
Who is HSBC ?
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HSBC – The Worlds Local Bank
HSBC Holdings plc is a global financial
company that was founded in the former
British colony Hong Kong (in March 1865).
The world's largest banking and financial
services group and the world's 8th largest
company according to Forbes magazine.
8,000 offices in 87 countries and territories
in Africa, Asia, Europe, North America and
South America and around 100 million
customers.
HSBC is by far 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
Listed in the London , Hong Kong , New York
, Paris and Bermuda Stock Exchange
220,000 shareholders in 119 countries
Where did HSBC originate ?
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Hong Kong and Shanghai
Banking Corporation
Origins of the bank lie in Hong
Kong and Shanghai, where
branches were first opened in
1865.
Founded by the Scotsman Sir
Thomas Sutherland (1834-1922)
How has HSBC expanded over the
years ?
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In May 1999 HSBC embarked on a major acquisition in the United
States 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.
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 Lavo ro 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.
HSBC’s operations
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HSBC Private Bank
HSBC Premier
HSBC Bank International
HSBCnet
HSBC Direct
HSBC Private Banking
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HSBC Private Banking is a private banking service
providing private banking and trustee services to
wealthy individuals and their families.
HSBC Private Bank’s services are tailored to the
needs of people looking to invest or borrow 2 million
or more (minimum).
HSBC Private Bank provides services to high net
worth individuals and their families through some 91
locations in 31 countries and territories
HSBC Premier is HSBC group's premium financial
services product. Being a primier customer
typically require deposits and investments of at
least $100,000, £50,000, or €100,000.
Customers 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 centers, free banking services and
preferential rates.
HSBC Bank International
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What is offshore banking?
An offshore bank is simply a
bank located outside your
country of residence, usually
in a low tax jurisdiction.
HSBC Premier- a offshore
banking arm of the HSBC
Group whose focus is on
offshore banking solutions
and cross border services to
expatriates and migrants.
HSBC Premier 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. It
also offers independent
financial planning, and has
representative offices all over
the world, often working
alongside local HSBC
operations in those regions.
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HSBCnet is a worldwide service that caters to
local business needs by offering particular
services 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.
HSBC Direct
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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.
Currently, HSBC operates centers out of eight countries, including
Brazil , The Czech Republic, India China ,Malaysia, Poland, Sri
Lanka and Philippines.
Who is HSBC’s competition ?
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Barclays PLC
Citigroup, Inc.
Royal Bank of Scotland Group plc
HSBC’s Image
The world’s local bank
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HSBC has developed a global network of 8,000 offices across 87
countries, enabling them to appreciate first-hand the richness of
the world’s diversity.
Their Values Are :
To be Perceptive
To continuously try to improve and be Progressive
To fulfill expectations and to be Responsive
To be Respectful and ethical at all times
To treat everyone Fairly
What is likely to affect the business?
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Incomes :
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Recession:
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Stock markets:
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Government policies:
If people cannot afford to invest in the company or cannot buy shares
this will affect the business because it will depreciate their stock market value and the
company can lose its value , customers and shareholders.
The recession in the banking industry has adversely
affected the cash flow for the industries. When industries cannot raise
funds for their expansion or operation then the industrial output would
come down. This in turn would affect the GDP of the nation. It may affect
the employment situation in the country also.
Depending on the stock market , the value of the
company can either go up or down . This can positively and negatively
affect the companies and the markets it operates in.
Monetary policy rests on the relationship
between the rates of interest in an economy, (that is the price at which
money can be borrowed) , and the total supply of money. When the Fed is
worried that the economy is growing too fast or prices are rising too
rapidly, it tightens up reserve positions by selling government securities or
allowing maturing securities to run off. This process is known as draining
reserves. If, on the other hand, the Fed becomes concerned that the
economy is not growing fast enough, or is headed into a recession, it can
inject new reserves into the banking system by buying securities from
securities dealers.
A future for HSBC ?
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As of 2010, it is both the world's largest banking and financial
services group and the world's 8th largest company according to
a composite measure by Forbes magazine
Made over $5800 billion profit in 2009
On June 30th 2010 , it had an estimated of $2418 Trillion in assets
As of August 2010, it was the largest company listed on the Stock
Exchange, with a market capitalization of £115.8 billion
Growing more and more
Everything is going very well for HSBC .
They have tried to tap into undiscovered markets specially in
third world countries .
They try to maintain good customers relations and try hard to be
ethical and fair and always on their feet when it comes to
customers.
Bibliography
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HSBC(2010)HSBC home page (internet) available
from : http://www.hsbc.com/1/2/about (Date
viewed 21 September 2010)
Wikipedia the free encyclopedia (21 September
2010) HSBC (internet) available from :
http://en.wikipedia.org/wiki/HSBCDate (Date
viewed 21 September 2010)
Asnwers.com (2010) Monetary Policy (internet)
avilable from :
http://www.answers.com/topic/monetary-policy
(Date viewed 21 September 2010)
THANK YOU
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Pasang Yangji Sherpa
Grade 11