HSBC

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For the history of the HSBC Group prior to the founding of HSBC Holdings in 1990, see The Hongkong and Shanghai Banking

Corporation.

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HSBC Holdings plc

滙豐控股有限公司

Type Public

LSE: HSBA

SEHK: 005

NYSE: HBC

Euronext: HSB

BSX: 1077223879

Industry Banking

Financial services

Investment services

Founded Hong Kong (1865)

Founder(s) Thomas Sutherland

Headquarters London, United Kingdom[1]

Number of locations 9,500 offices in 88 countries & territories

Area served Worldwide

Key people Stephen Green

(Group Chairman)
 Michael Geoghegan

(Group CEO)

Products Finance and insurance

Consumer Banking

Corporate Banking

Investment Banking

Investment Management

Global Wealth Management

Private Equity

Mortgages

Credit Cards

Revenue ▼ $103.74 billion (2009)[2]

Operating income ▼ $7.079 billion (2009)[2]

Profit ▼ $5.834 billion (2009)[2]

Total assets ▼ $2.364 trillion (2009)[2]

Total equity ▲ $128.299 billion (2009)[2]

Employees 302,000 (2009)[2]

Subsidiaries HSBC Bank plc

HSBC GLT India

The Hongkong and Shanghai Banking Corporation

HSBC Bank USA

HSBC Bank Middle East

HSBC Mexico

HSBC Bank Brazil

HSBC Finance

Website HSBC.com
HSBC Holdings plc (滙豐控股有限公司) is a global financial services corporation headquartered in London, United Kingdom.[1] 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.[3][4]HSBC was founded as The Hongkong and Shanghai Banking Corporation and Hong

Kong served as the bank's headquarters until 1992 when it moved to London as a condition of completing the acquisition of Midland

Bank and as the handover of Hong Kong's sovereignty approached.[5] Today, whilst no single geographical area dominates the

group's earnings, Hong Kong still continues to be a significant source of its income. Recent acquisitions and expansion inChina are

returning HSBC to part of its roots.[6] HSBC has an enormous operational base in Asia and significant lending, investment,

and insuranceactivities around the world. The company has a global reach and financial fundamentals matched by few other

banking or financial multinationals.[7]

HSBC is listed on the London, New York, Hong Kong, Paris and Bermuda Stock Exchanges, and is a constituent of the FTSE 100

Index and the Hang Seng Index. As of August 2010, it was the largest company listed on the FTSE, with a market capitalisation of

£115.8 billion.[8]

Contents

 [hide]

1 History

o 1.1 Development of

the bank

o 1.2 Subprime crisis

2 Operations

o 2.1 Corporate profile

o 2.2 Latin America

o 2.3 Asia Pacific

o 2.4 Middle East

o 2.5 North America

o 2.6 Europe

3 Global product lines and

programmes

o 3.1 Group Service

Centres

o 3.2 HSBC Private

Bank

o 3.3 HSBC Premier

o 3.4 HSBC Bank
 International

o 3.5 HSBCnet

o 3.6 HSBC Direct

4 Brand and advertising

o 4.1 Logo

o 4.2 Sponsorship

5 Customer groups

o 5.1 Personal financial

services

o 5.2 Commercial

banking

o 5.3 Global banking

and markets

o 5.4 Private banking

6 See also

7 Notes

8 External links

[edit]History

[edit]Development of the bank

HSBC Tower, the international headquarters for HSBC Holdings plc in Canary Wharf, London.

For the history of the HSBC Group prior to the founding of HSBC Holdings in 1990, see The Hongkong and Shanghai Banking

Corporation.

HSBC (originally "The Hongkong and Shanghai Banking Corporation") was founded in Hong Kong (March) and Shanghai (one

month later) in 1865. HSBC Holdings was established in 1990 and became the parent company to The Hongkong and Shanghai

Banking Corporation in preparation for its purchase of Midland Bank and a change of domicile for the transfer of sovereignty of

Hong Kong. Shares in HSBC Holdings, which gave HSBC a substantial presence in the UK, was completed in 1992. As part of the

takeover conditions for the purchase of Midland, HSBC was required to move its world headquarters from Hong Kong to London in

1993.

Major acquisitions in South America started with the purchase of Banco Bamerindus of Brazil for $1bn in March 1997 [9] and the

acquisition of Roberts SA de Inversiones of Argentina for $600m in May 1997.[10]

HSBC World Headquarters designed by Norman Foster in London, United Kingdom.

HSBC Private Bank refurbishment and extension at 78 St. James's by Squire and Partners in London, United Kingdom.

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.[11]

Expansion into Continental Europe took place in April 2000 with the acquisition of Crédit Commercial de France, a large French

bank for £6.6bn.[12]

In July 2001 HSBC bought Demirbank, an insolvent Turkish bank.[13] Then in August 2002 HSBC acquired Grupo Financiero Bital,

SA de CV, Mexico's third largest retail bank for $1.1bn.[14]

The new headquarters of HSBC Holdings at 8 Canada Square, London officially opened in April 2003. [15]

Then in September 2003 HSBC bought Polski Kredyt Bank SA of Poland for $7.8m. [16]

In June 2004 HSBC expanded into China buying 19.9% of the Bank of Communications of Shanghai.[17]
In the United Kingdom HSBC acquired Marks & Spencer Retail Financial Services Holdings Ltd for £763m in December 2004. [18]

Acquisitions in 2005 included Metris Inc, a US credit card issuer for $1.6bn in August [19] and 70.1% of Dar Es Salaam Investment

Bank of Iraq in October.[20]

In April 2006 HSBC bought the 90 branches in Argentina of Banca Nazionale del Lavoro for $155m.[21]

In December 2007 HSBC acquired The Chinese Bank in Taiwan.[22]

In May 2008 HSBC acquired IL&FS Investment, an Indian retail broking firm.[23]

[edit]Subprime crisis

In November 2002 HSBC expanded further in the United States. Under the chairmanship of Sir John Bond, it spent £9bn

(US$15.5bn) to acquire Household Finance Corporation (HFC), a US credit card issuer and subprime lender.[24] 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".[25] Under the new name of HSBC Finance, the division was the second largest subprime lender in the US.[26]

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. [27][28]

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."[29]; analyst Colin Morton said, "the takeover was an absolute disaster". [28][30]

Although it was at the centre of the subprime storm, the wider group has weathered the economic crisis better than other global

banks. According toBloomberg, "HSBC is one of world’s strongest banks by some measures."[31] 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. [32] 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.
[33]
 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. [34]

[edit]Operations

[edit]Corporate profile

HSBC global locations

In February 2008, HSBC was named the world's most valuable banking brand by The Banker magazine.[35][36] 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. [37] 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. [38]

HSBC's Hong Kong head office, also designed by Norman Foster

As of April 2, 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), 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).[39]

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. Since the end of 2005, HSBC has been rated the largest banking group in the world by Tier 1 capital.[40]

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 8,500 offices in 86 countries, 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.[41] For details of other group companies see Category:HSBC.
[edit]Latin America

 HSBC Mexico SA

 ·   HSBC Bank Brazil SA, Banco Multiplo

 ·   HSBC Bank Argentina SA

[edit]Asia Pacific

 The Hongkong and Shanghai Banking Corporation Ltd

 ·   Hang Seng Bank Ltd

 ·   HSBC Bank (China) Company Ltd

 ·   HSBC Bank Malaysia Berhad

[edit]Middle East

 HSBC Bank Middle East Ltd

 ·   HSBC Bank Egypt SAE

 ·   The Saudi British Bank

[edit]North America
 HSBC Bank USA Inc

 ·   HSBC Finance Corporation

 ·   HSBC Bank Canada

[edit]Europe

 HSBC Bank plc

 ·   HSBC France

 ·   HSBC Trinkaus und Burkhardt AG

 ·   HSBC Private Bank (UK) Ltd

 ·   HSBC Bank Polska S.A.

[edit]Global product lines and programmes

[edit]Group Service Centres

The HSBC Global Technology Centre inPune, India develops software for the entire HSBC group [42].

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, Hyderabad (India),Vishakhapatnam (India), Kolkata (India), Guangzhou (China),

and Curitiba (Brazil).

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).[43]

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.[43]

HSBC Building, Shanghai

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,Guangz

hou 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 June 27, 2006, HSBC reported that a "small number" of customers had suffered from fraud totaling £233,000 after an employee

at the Bangalore call centre supplied confidential customer information to fraudsters. [44]

[edit]HSBC Private Bank

HSBC Private Bank [45] 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 Centre, Ikebukuro, Japan.

[edit]HSBC Premier

HSBC Premier[46] 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.

[edit]HSBC Bank International

HSBC Bank International [47] is the offshore banking arm of the HSBC Group, 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

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'.

[edit]HSBCnet

HSBCnet[48] 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, has been trying to fend off a union recognition campaign by the Trade Union Unite.

[edit]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[49] in November 2005 and is now available in Britain, Canada,[50] Taiwan[51], South Korea[52] and France.

Poland is launching business direct in September 2009.

[edit]Brand 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.

[edit]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 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, 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.

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 whenRed 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

14 rugby unioncompetition, 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 National Hockey League's Buffalo Sabres until 2026.

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.[53]

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.[54]

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. [55]

[edit]Customer groups

HSBC splits its business into four distinct groups:

[edit]Personal financial services

HSBC provides more than 100 million customers worldwide with a full range of personal financial services,

including current and savings accounts, mortgage loans, car financing, insurance, credit cards,loans, pensions and investments.

[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 andassociations, incorporated businesses and publicly quoted companies.

[edit]Global banking and markets

[edit]Private banking

Main article: HSBC Private Bank

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 individuals 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