The HSBC group

1) INTRODUCTION:

About HSBC HOLDINGS PLC is a banking and financial services organization. HSBC is known as world’s local bank. Founded in 1865 as the Hongkong and Shanghai Banking Corporation by Thomas Sutherland, a Scot who was then working for the Peninsular and Oriental Steam Navigation, it established itself as the main financier for British shipping and trade in opium, silk and tea. It handled China’s first loan in 1874 and grew so important to Hong Kong that many consumers hold their entire pension in HSBC shares.

2) History of HSBC:

The HSBC group evolved from The Hong Kong and Shanghai Banking Corporation Limited, which was founded in 1865 in Hong Kong with offices in Shanghai, London, and an agency in San Francisco, USA. The company expanded primarily through already established offices in the banks name until the mid 1950’s when it began to create or acquire subsidiaries. The following are some of the key transitions in the Groups growth and history since 1959.

The HSBC Group has an international bank. HSBC’s many principal companies opened for business over a century ago and they have a history which is rich in variety and achievement. The HSBC Group is known as, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between China and Europe.

HSBC is one of the largest banking and financial services organisations in the world. HSBC’s international network comprises around 8,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.

For HSBC, diversity reaches far beyond compliance with legislation and equal opportunities initiatives. As an international bank, we value the diversity of the markets in which we operate.

HSBC’s diversity strategy is based on the premise that the most important competitive differentiators are the quality of individual service we provide to our individual customers and the way we treat our individual employees.

We have a number of senior general managers in HSBC who champion initiatives, which specifically focus on such issues as disability, race, gender and sexuality. Their role is to help every one of our people to increase their understanding of our communities and customers and to ensure that understanding is shared throughout our bank.

One of the ways in which they do this is by forgingpartnershipswith organisations that promote equality of opportunity in business and in the community. HSBC is one of the world’s top private banking businesses, providing financial services to high net worth individual and families in 70 different locations.

3) Board of Directors in the HSBC

: Stephen K Green-Chairman

: Peter Widmer-Vice-Chairman

: Indu Chandaria-Director

: Michel Elia-Director

: Adrian HC Fu-Director

: Stuart T Gulliver-Director

: André Kudelski-Director

: Youssef A Nasr-Director

: Dr Sieghardt Rometsch-Director

: David Shaw-Director

: Bernard Sabrier-Advisor to the Board

: Christopher Meares-Director

4) The Main Competitors of HSBC

HSBC bank’s main competitors are CITI GROUP AND, ROYAL BANK OF SCOTLAND. These banks are the main competitors of HSBC GROUP. From this graph we can understand how they do business in today’s market.

Top Competitors Performance Comparison: HSBC

5) Marketing Strategy of HSBC

HSBC aims to become the world’s leading financial services organisation. HSBC’s goal is to balance earnings between stable, mature economies and the faster-growing, but more volatile, emerging markets. To achieve this, HSBC has developed a strategy of ‘Managing for Value’ designed to build on its achievements. Uniquely cosmopolitan customer base Connect with the local communities and spread that understanding around the world. The Bank locally enjoys the full support of management and resources from HSBC Group globally, with liquidity for lending and experience to manage clients’ funds. This is the model that has worked so well for HSBC in the 85 countries in which it operates and we remain very positive about potential for Georgia. This year HSBC will open its second retail branch in the capital, further expand the Bank’s ATM network in the capital, and continue to invest in and grow its local professional team to better support the Bank’s fast-growing client base.

The HSBC group provides a comprehensive range of financial services namely:

Personal Financial Services:

It has over 100 million personal consumers’ worldwide (including Consumer Finance customers). It provides a full range of personal finance services, including current and savings accounts, mortgages, insurance, loans, credit cards, pensions, and investment services. It is one of the world’s top ten issuers of credit cards.

Consumer Finance:

The Company’s Finance Corporation’s consumer finance business ensures point of sale credit to consumers, and lends money and provides related services to meet the financial needs of everyday people. In 2004, it completed the integration of its former household businesses.

Commercial Banking:

HSBC is a leading provider of financial services to small, medium-sized and middle market enterprises. The group has over two million such customers, including sole proprietors, partnerships, clubs, and associations, incorporated businesses and publicly quoted companies. In the UK, 209 Commercial Centre were launched to provide improved relationship management for higher value small-medium-sized enterprise customers, while in Hong Kong, Business Banking Centres, were expanded to provide a one-stop service.

6) Mission, Vision and Objectives

– Leadingin chosen markets

– Deliveringan outstanding client experience based on excellence in sales, service and solutions

– Achievinga superior, ethically based, long-term return for our shareholders

– Buildinghighly motivated, high-performance teams

– Creatinga challenging, rewarding and fun work environment

Vision:

– Bringing People together That Make A Difference

Objectives:

– HSBC is inbusinessto make a profit.

– HSBC returning the maximum investment to its shareholders is not the sole focus of this global financial institution.

– From its roots in rural Asia to its advancement to a global corporation, HSBC has maintained a core focus on basic principles.

– Achieving its aims and objectives by adhering to its values has allowed HSBC to maintain both profitability and high ethical standards.

7) Strengths and Weakness

Strengths:

• Well capitalised

• Strong presence in emerging market

• Global presence and

• Brand name

Weakness:

• Trust in banks due to financial losses suffered by investors

• Increase of Mortgage rates

• HSBC associate itself strongly with small business sector, this lead to increased risks in current economic situation

8) HSBC Global Technology Center

• GLT was set up in April 2002 in Pune, India with a mandate to develop software for the HSBC group.

• Following the successful establishment and take off of GLT in India, the HSBC group has expanded its GLT footprint and established a Global Technology Center in China (GLTc) and another Global Technology Center in Brazil (GLTb).

• 25million of customers have registered for internet banking.

9) Conclusion

In conclusion we can say that HSBC is world’s local bank. HSBC BANK’s aims are to become world’s leading financial services organisation. HSBC’s goal is to balance earnings between stable, mature economies and the faster-growing, but more volatile, emerging markets.

10) Bibliography

Nytimes, hsbc.com, economics, fortune 500, International herald tribune, financial times

http://www.hsbc.com/1/PA_1_1_S5/content/assets/investor_relations/091202_djf_socgen.pdf