A company report - Pasang Yangji Sherpa

Grade 11

Who is HSBC ? 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 ? 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 ? 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

HSBC Private Bank HSBC Premier HSBC Bank International HSBCnet HSBC Direct

HSBC Private Banking 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 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.

What is offshore banking? An offshore bank is simply a

bank located outside your country of residence, usually in a low tax jurisdiction.

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 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 ?

Barclays PLC Citigroup, Inc. Royal Bank of Scotland Group plc

HSBC’s ImageThe world’s local bank

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?

Incomes : 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.

Recession: 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.

Stock markets: 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.

Government policies: 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 ? 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

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 Pasang Yangji Sherpa

Grade 11