What is hsbc stands for?

HSBC
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 [1](As of Jun 30, $1.74 trillion while Citigroup reported $1.63 trillion).[2] 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. [3]

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.

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.[4] For details of other group companies see Category:HSBC.

[edit] Americas

* Argentina HSBC Bank Argentina SA has around 150 branches throughout Argentina providing a full range of banking and financial products and services to over 1.2 million customers. Midland Bank purchased a stake in Banco Roberts SA in 1987; in 1997 HSBC took full control of the bank and rebranded it HSBC.

* Bermuda 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.
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HSBC sign on a branch.

* Brazil HSBC Bank Brasil S.A.- Banco Multiplo is HSBC’s largest presence in South America. It was established in March 1997 with the acquisition of the assets, liabilities and subsidiaries of Banco Bamerindus do Brasil S.A., which was established in 1952. HSBC is now among the ten largest banks in Brazil, with more than 1,700 branches and sub-branches in 550 Brazilian cities.

* Canada HSBC Bank Canada is the seventh largest bank in Canada, with offices in every province except for Prince Edward Island, and is the largest foreign-owned bank in the country. HSBC has a strong presence in overseas Chinese communities especially in Vancouver and Toronto, and is the only Canadian bank with headquarters in British Columbia.

* Mexico HSBC Mexico, SA is one of Mexico’s four largest banking and financial service companies, with 1,400 branches, 4,800 ATMs and 6 million customers. HSBC purchased Banco Internacional, S.A. known as Bital, in November 2002, rebranding it overnight in January 2004.

* United States HSBC Bank USA N.A. and HSBC Finance Corporation represent the group’s business in the US, which has been built up via the acquisition of Marine Midland (1980), Republic National Bank (1999), Household International (2003) and Metris Companies (2005) among others. HSBC Bank USA, headquartered in Buffalo, NY, is a full service bank, with a strong branch network in New York State but also operating nationwide. HSBC Finance Corporation focuses on selected lines of consumer lending with branch networks across the US.

[edit] Asia Pacific

* Australia HSBC Bank Australia Limited gained its banking licence in 1986. Today, a full range of Personal and Commercial services are offered from a network of branches as well as via direct channels.

The Hongkong and Shanghai Banking Corporation building on The Bund (with the round dome, currently houses the Shanghai Pudong Development Bank).
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The Hongkong and Shanghai Banking Corporation building on The Bund (with the round dome, currently houses the Shanghai Pudong Development Bank).

* People's Republic of China Hongkong and Shanghai Banking Corporation HSBC established its Shanghai branch office on 3 April 1865 and has had a continuous presence in the city since then, except during the Japanese Occupation. Until the economic reforms of the late 1970s, its activities were mainly in inward remittances and export bills, however its activities now span a wider range. The bank has purchased stakes in various local firms, including 19.9% of Bank of Communications, 8% of Bank of Shanghai and 19.9% of Ping An Insurance.

* Hong Kong Hongkong and Shanghai Banking Corporation and Hang Seng Bank HSBC first opened for business in Hong Kong on 3 March 1865. Hong Kong dollar banknotes are issued by three commercial banks in the Hong Kong SAR, of which HSBC is the most prolific by value. The Hang Seng Index for stock prices in Hong Kong is named after the Hang Seng Bank. The two banks are today first and second by market share in Hong Kong.

* India Hongkong and Shanghai Banking Corporation The Mercantile Bank of India, London and China was established in October 1853 in Bombay (now Mumbai). The Mercantile Bank was acquired in 1959 by HSBC. HSBC is now one of the fastest growing foreign banks in India, both in domestic banking and support operations for worldwide operations (see Global Service Centres).

* Indonesia Hongkong and Shanghai Banking Corporation HSBC opened its first Indonesian office in Jakarta in 1884 as The Hongkong and Shanghai Banking Corporation Limited. Having been able to restart its operations after the Second World War, it was again forced to close in mid-1960s, however the Bank was granted a new banking licence in 1968 its operations have grown to make it one of the largest foreign banks operating in Indonesia.

* Malaysia 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.

* Singapore Hongkong and Shanghai Banking Corporation operates as a full service bank with its headquarters in Collyer Quay, it is an approved Primary Dealer in the Singapore Government Securities Market and an Approved Bond Intermediary, with over a hundred staff operating one of the largest integrated dealing rooms in Singapore.

* South Korea Hongkong and Shanghai Banking Corporation is expanding in competitive South Korean market, currently operating from a network of 14 branches, the first having been opened in Jemulpo in 1897 .

* Republic of China Hongkong and Shanghai Banking Corporation offers a wide range of financial products in Taiwan as part of its Greater China operations. Having first appointed an Agent in Tamsui in 1885, it has now reached an 18 location operation.

* Thailand Hongkong and Shanghai Banking Corporation operates a significant (greater than US$50m) business in Thailand, including personal financial services as well as a corporate and commercial banking operation.

[edit] Europe
UK & World headquarters at 8 Canada Square.
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UK & World headquarters at 8 Canada Square.

* France 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.

* 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.

* Republic of Ireland HSBC Bank plc and a number of subsidiaries have operations in insurance, reinsurance, securities services and a newly established consumer finance business. The fund management business had assets in excess of US$20bn as of 2006.[5]

* Malta HSBC Bank Malta plc is one of the largest banks in Malta. 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 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.

* Turkey 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 160 branches, offering products and services to corporate, commercial and personal customers, both under the HSBC brand as well as the Advantage brand.

* United Kingdom HSBC Bank plc is one of the 'Big Four' high street banks in the UK, maintaining a large network of branches in England and Wales, with a smaller presence in Scotland and Northern Ireland. It also operates the telephone and internet bank First Direct, the consumer lending brand 'Beneficial Finance', and the financial services division of Marks & Spencer.

[edit] Middle East and Africa

* Egypt 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.

* Saudi Arabia SABB (The Saudi British Bank) In Saudi Arabia HSBC is represented by The Saudi British Bank which is a 40% owned subsidiary, and also a joint venture partner in HSBC Saudi Arabia Limited, the kingdom’s first full service independent investment bank.

* Qatar HSBC Bank Middle East Limited HSBC provides a range of banking services for both corporate and individual customers in Qatar. HSBC is the largest foreign bank in Qatar and has five branches, in Doha, Al Sadd, West Bay, Rayyan and Grand Hamad Street as well as a large network of ATMs at 21 different locations.

* United Arab Emirates HSBC Bank Middle East Limited The United Arab Emirates represents a key part of HSBC Bank Middle East's business, with 16 branches and the firm's head office located here.

[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).[6]

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.[7]

[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.

[edit] HSBCnet

Corporate, Investment Banking and Markets has HSBCnet (http://www.hsbcnet.com) 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.
The 2004 Jaguar car, being driven by Mark Webber.
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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.

[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-