HSBC
322572
226047742
2008-07-16T16:24:06Z
90.218.84.197
{{Infobox Company
| company_name = HSBC Holdings plc
| company_logo = [[Image:HSBC.svg|200px|HSBC Holdings PLC logo]]
| vector_logo =
| company_type = [[Public limited company|Public]] ({{lse|HSBA}}, {{sehk|005}}, {{nyse|HBC}}, {{euronext|HSBC}}, {{BSX|1077223879}})
| foundation = [[Image:Flag of Hong Kong 1959.svg|22px]] [[Hong Kong]] (1865)
| founder = [[Thomas Sutherland (banker)|Thomas Sutherland]]
| location_city = {{flagicon|UK}} [[London]]
| location_country = [[England]], [[United Kingdom|UK]]
| location =
| origins =
| key_people = [[Stephen Green (banker)|Stephen Green]], Chairman<br /> [[Michael Geoghegan]], Chief Executive Officer
| area_served =
| industry = [[Finance and Insurance]]
| products = [[Financial Services]]
| market cap = 192,254.43mm [[USD]] (June 16, 2008). 2nd largest in Banking & Financial sector behind [[Industrial and Commercial Bank of China]]
| revenue = {{profit}} $87.6 billion [[USD]] ([[2007]])
| operating_income = {{profit}} $22.7 billion [[USD]] ([[2007]])
| net_income = {{profit}} $20.5 billion [[USD]] ([[2007]])
| num_employees = 330,000
| parent =
| subsid = [[HSBC Bank plc]], [[The Hongkong and Shanghai Banking Corporation]], [[HSBC Bank USA]], [[HSBC Mexico]], [[HSBC Bank (Brazil)|HSBC Bank Brasil]], [[HSBC Finance]]
| owner =
| slogan = The world's local bank
| homepage = [http://www.hsbc.com www.hsbc.com]
| dissolved =
| footnotes =
}}
'''HSBC Holdings plc''' ({{zh-tsp|t=滙豐控股有限公司|s=汇丰控股有限公司|p=huìfēng kònggǔ yǒuxiàn gōngsī}}) ({{lse|HSBA}}, {{sehk|0005}}, {{nyse|HBC}}, {{euronext|HSBC}}, {{BSX|1077223879}}) is a [[public limited company]] incorporated in [[England]] and [[Wales]], headquartered in [[London]].<ref>"Group Structure" HSBC website.[http://www.hsbc.com/1/2/about-hsbc/group-structure]</ref> It is the world's largest company and the world's largest banking group, as calculated based on different metrics by the annual ''Forbes'' list of the world's largest firms published on [[April 2]], [[2008]].<ref>"Special Report - The Global 2000," ''Forbes'', April 2, 2008. [http://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.html]</ref><ref>"HSBC tops Forbes 2000 list of world's largest companies," HSBC website, 4 April 2008.[http://www.hsbc.com/1/2/newsroom/news/news-archive-2008/hsbc-tops-forbes-2000-list-of-world-s-largest-companies]</ref> In February 2008, '''HSBC''' was named the world's most valuable banking brand by ''The Banker'' magazine.<ref>"Hot Brands," ''The Banker'', March 4, 2008. [http://www.thebanker.com/news/fullstory.php/aid/5640/HOT_BRANDS.html]</ref><ref>http://www.hsbc.com/1/2/investor-relations/ir-fast-facts</ref>
HSBC Holdings was established in 1991 to become the parent company to [[The Hongkong and Shanghai Banking Corporation Limited]] in preparation for its purchase of the [[Midland Bank]] in Britain and in change of domicile for the [[transfer of sovereignty of Hong Kong]]. The former was established virtually simultaneously in [[Hong Kong]] and [[Shanghai]] in 1865 to finance the growing trade between [[China]] and [[Europe]] by Scotsman [[Thomas Sutherland (banker)|Thomas Sutherland]], who wanted a bank operating on "sound Scottish banking principles". Its heritage in East Asia means it is a British institution with an extensive international pedigree.
HSBC is well-known in banking circles for its diversified and risk-averse approach in its business operations (to the extent that, for instance, Europe contributes around one-third of its 2007 earnings and [[commercial banking]] 30%). <ref>http://www.hsbc.com/1/2/investor-relations/ir-fast-facts</ref>
According to ''Forbes'' magazine, the world's largest bank (based on a composite score) is currently 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), and the most profitable bank in the world with $19.13 billion in net income last year (compared to [[Citigroup]]'s $3.62 billion in the same period) as of [[April 2]], [[2008]].<ref>"The Global 2000", ''Forbes'', April 2, 2008. [http://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.html]</ref>
It is also by far the largest bank in the United Kingdom and in Hong Kong, prints most of Hong Kong's local currency in its own name, is a [[lender of last resort]] in many parts of the world,<ref>Parmy Olson, "Better Safe Than Sorry", ''Forbes'', 04.21.08 [http://www.forbes.com/forbes/2008/0421/140.html]</ref> and since the end of 2005 has been the largest banking group in the world by [[Tier 1 capital]].<ref>[http://www.economist.com/markets/indicators/displaystory.cfm?story_id=7141354 The world's biggest banks | Economist.com<!-- Bot generated title -->]</ref> By acquisitions and organic expansion HSBC is currently pursuing a strategy of rapid growth in booming China.<ref>Vidya Ram, "HSBC Gets Back In Touch With Its Roots", ''Forbes'', 03.10.08 [http://www.forbes.com/markets/2008/03/10/hsbc-bocom-china-markets-equity-cx_vr_0310markets13.html]</ref>
== Local operations ==
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 10,000 offices in 83 countries, 210,000 shareholders, 330,000 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. Outlined below are [[countries]] which, in 2007, generated the top 20 profit before tax figures, with the addition of the United States as specific issues exclude that country from the top 20 for 2007.<ref>{{PDFlink|http://www.hsbc.com/1/PA_1_1_S5/content/assets/investor_relations/080313_latin_america_investor_roadshow.pdf}} Presentation by Paul Thurston (CEO HSBC Mexico) and Victor Jimenez (CFO HSBC Mexico), on 13 March 2008 at the Latin America Investor Roadshow</ref> For details of other group companies see [[:Category:HSBC]].
=== Americas ===
*{{flagicon|Argentina}} '''[[HSBC Bank 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. Also, after the crisis of 2001, they bought the Argentine operations of the Italian Banca Nazionale del Lavoro (BNL) initially referred to as "BNL en argentina es HSBC" (BNL in Argentina is HSBC) but after two years the BNL network was rebranded as HSBC.
*{{flagicon|Bermuda}} '''[[Bank of 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.
*{{flagicon|Brazil}} '''[[HSBC Bank (Brazil)|HSBC Bank Brasil SA]]''' is HSBC’s largest presence in [[South America]]. [[Image:Palacio_Avenida_HSBC_2_curitiba_brasil.jpg|right|200px|thumb|Palacio Avenida: The headquarters of HSBC Bank Brasil, located in [[Curitiba]].]]It was established in March 1997 with the acquisition of the assets, liabilities and subsidiaries of Banco [[Bamerindus]] do Brasil SA, 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.
*{{flagicon|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 [[Vancouver]], [[British Columbia]].
*{{flagicon|Costa Rica}} '''[[HSBC Banex Costa Rica]]''' is the third largest bank in Costa Rica.
*{{flagicon|Mexico}} '''[[HSBC 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, SA]] known as Bital, in November 2002, rebranding it overnight in January 2004.
*{{flagicon|El Salvador}} '''[[HSBC El Salvador, SA]]''' is the third largest banking and financial service in the country.
*{{flagicon|USA}} '''[[HSBC Bank USA|HSBC Bank USA NA]] and [[HSBC Finance|HSBC Finance Corporation]]''' represent the group’s business in the US, which has been built up via the acquisition of [[Marine Midland]] (1980), [[Republic New York|Republic National Bank]] (1999), [[Household International]] (2003) and [[Metris Companies]] (2005) Solstice Capital Group (2006), among others. HSBC Bank USA, headquartered in [[Mettawa, Illinois]] (as of 2008), is a full service bank, with a strong branch network in [[New York|New York State]] but also operating nationwide. HSBC Finance Corporation focuses on selected lines of consumer lending with a branch network across the US.
[[Image:Hsbc center.jpg|right|thumb|HSBC American headquarters in Buffalo, New York]]
=== Asia Pacific ===
*{{flagicon|Australia}} '''[[HSBC Bank 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.
*{{flagicon|China}} '''[[HSBC Bank (China)|HSBC Bank (China) Company Limited]] and [[HSBC Rural Bank|HSBC Rural Bank Company Limited]]''' 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. HSBC has purchased stakes in various local firms, including 19% of [[Bank of Communications]], 8% of [[Bank of Shanghai]], 16.8% of [[Ping An of China|Ping An Insurance]] and via its subsidiary [[Hang Seng Bank]] 12.8% of [[Industrial Bank (China)|Industrial Bank]].
*{{flagicon|Hong Kong}} '''[[The Hongkong and Shanghai Banking Corporation|The Hongkong and Shanghai Banking Corporation Limited]] and [[Hang Seng Bank|Hang Seng Bank Limited]]''' HSBC first opened for business in [[Hong Kong]] on [[3 March]] [[1865]]. [[Hong Kong dollar]] [[banknote]]s are issued by three [[commercial bank]]s 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.
*{{flagicon|India }} '''[[The Hongkong and Shanghai Banking Corporation|The Hongkong and Shanghai Banking Corporation Limited]]''' 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 [[HSBC#Group Service Centres|Group Service Centres]]).
*{{flagicon|Pakistan}} '''[[The Hongkong and Shanghai Banking Corporation Limited|HSBC Pakistan]]''' The [[HSBC]] opened its first branch in [[Pakistan]] namely [[HSBC PAKISTAN LIMITED]] in early 2008
*{{flagicon|Malaysia}} '''[[HSBC Bank 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 [[Malaysia]]n 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. HSBC operates a call center in [[Cyberjaya]],[[Malaysia]], a cybercity in Malaysia.
*{{flagicon|Singapore}} '''[[The Hongkong and Shanghai Banking Corporation|The Hongkong and Shanghai Banking Corporation Limited]]''' 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]].
=== Europe ===
*{{flagicon|Armenia}} '''[[HSBC Bank Armenia cjsc|HSBC Bank Armenia cjsc]]''' was the first international bank to open in Armenia in 1996. The bank is a joint venture between the HSBC Group, which has a 70% ownership, and members of overseas Armenian businesses. It is one of the leading banks in the foreign exchange market.
*{{flagicon|France}} '''[[HSBC (France)|HSBC SA]]''' operates around 800 branches in [[France]] since the takeover of [[Credit Commercial de 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.
*{{flagicon|Germany}} '''[[HSBC Trinkaus|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.
*{{flagicon|Malta}} '''[[HSBC Bank 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.
*{{flagicon|Switzerland}} '''[[HSBC Private Bank (Suisse)|HSBC Private Bank (Suisse) SA]] and [[HSBC Guyerzeller Bank|HSBC Guyerzeller Bank AG]]''' are the [[Switzerland|Swiss]] operating subsidiaries 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.
*{{flagicon|Turkey}} '''[[HSBC Bank (Turkey)|HSBC Bank AS]]''' is now the fifth largest private bank in [[Turkey]], having expanded through internal financing and via [[Mergers and acquisitions|acquisition]] since entering the market in 1990. The bank has a network of around 190 branches, offering products and services to corporate, commercial and personal customers, both under the HSBC brand as well as the ''Advantage'' brand.
*{{flagicon|United Kingdom}} '''[[HSBC Bank (Europe)|HSBC Bank plc]]''' is one of the "Big Five" high street banks in the [[United Kingdom|UK]], maintaining a large network of branches in [[England]] and [[Wales]], with a smaller presence in [[Scotland]] and [[Northern Ireland]]. It acquired this presence in 1992 with the acquisition of [[Midland Bank]] plc. It also operates the previously Midland-owned telephone and internet bank [[First Direct]], the consumer lending brand Beneficial Finance, and the financial services division of [[Marks & Spencer]].
=== Middle East and Africa ===
*{{flagicon|Algeria}} '''[[HSBC Algeria]]''' was founded in 2008, as a reminder, the British bank HSBC graduated in [[May 2007]], the green light of the monetary and credit of the Bank of Algeria for the establishment of a subsidiary in Algeria, which will have a capital of 2,5 billion dinars, or about 25 million euros, which will be the third year, to 3,6 billion dinars (36 million euros) and will be headed by a manager of Algeria, in this case, Rachid Sekak.[http://www.lexpressiondz.com/article/2/2008-07-05/54126.html][http://www.dz-web.org/economie/247.html][http://www.algerie-dz.com/article14382.html]
*{{flagicon|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%.
*{{flagicon|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]].
*{{flagicon|United Arab Emirates}} '''[[HSBC Bank Middle East|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.
==Global product lines and programmes==
===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, Hyderabad (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).<ref name=bbc1>[http://news.bbc.co.uk/2/hi/business/4353423.stm BBC NEWS | Business | HSBC bank 'to offshore more jobs'<!-- Bot generated title -->]</ref>
[[Trade union]]s, 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.<ref name=bbc1/>
Currently centres exist in six countries, in [[Brazil]] in [[Curitiba]], in [[India]] in [[Hyderabad (India)|Hyderabad]], [[Bangalore]], [[Visakhapatnam]], [[Mumbai]], [[Kolkata]] and [[Pune]], in [[People's Republic of China|China]] in [[Shanghai]], [[Guangzhou]] and [[Shenzhen]], in [[Kuala Lumpur]] ([[Malaysia]]), [[Colombo]] ([[Kotte]]) ([[Sri Lanka]]) and [[Manila]] ([[Philippines]]). The [[Malta]] trial for a UK high value call centre has resulted in a growing operation in Malta. An option under consideration is reported to be a processing centre in [[Vietnam]] to access the [[French language|French]] skills of the population and therefore cut costs in the bank’s [[France|French]] operation.
On [[June 27]] [[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.<ref>[http://news.bbc.co.uk/1/hi/business/5122886.stm BBC NEWS | Business | Man held in HSBC India scam probe]</ref>
===HSBC Premier===
[http://www.hsbcpremier.com/ HSBC Premier] 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, or a mortgage of at least $500,000 or £250,000. Customers have a dedicated [[relationship manager]], global 24 hour access to call centres and preferential rates.
===HSBC Bank International===
[http://offshore.hsbc.com/1/2/home HSBC Bank International Limited] is the [[offshore bank]]ing arm of the HSBC Group, focusing on providing offshore solutions and cross border services to [[expatriate]]s and [[immigration|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.
<br />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'.
===HSBCnet===
[http://www.hsbcnet.com HSBCnet] is a global service that caters to local business needs by offering specialised functionality for different regions world-wide.
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.
===HSBC Direct===
HSBC Direct is an online direct banking operation which attracts customers through high-interest savings accounts and no service charges or minimum account balance requirements. It was first launched in the [http://www.hsbcdirect.com/usa USA] in November 2005 and is now available in [http://www.hsbcdirect.com/canada Canada], [http://www.hsbcdirect.com/taiwan Taiwan] and [http://www.hsbcdirect.com/southkorea South Korea].
==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.
===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 (sandglass)|hourglass]] shape. It was based on a Scottish flag, the country the founder of the company was born in. Like many other Hong Kong company flags that originated in the 19th century, the design was based on the [[Saltire|cross]] of [[Saint Andrew]].The logo was designed by Graphics artist [[Henry Steiner]].
[[Image:Webber usgp 2004.jpg|thumb|300px|right|The 2004 Jaguar car, being driven by [[Mark Webber]].]]
===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 Motor Company|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 [[CF 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 union]] competition, as well as the [[Hawthorn Football Club]] in the [[Australian Football League]].
In the United States, HSBC owns the naming rights to [[HSBC Arena|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 $5 million partnership with [[SOS Children's Villages UK|SOS Children]] as part of Future First.<ref>[http://www.soschildrensvillages.org.uk/sos-childrens-charity/our-partners/hsbc-sos-partnership.htm HSBC and SOS Children's Villages partnership]</ref>
HSBC sponsors the Great Canadian Geography Challenge, which has had around 2 million participants in the past 12 years. Since 2001, HSBC has sponsored the [[Celebration of Light]], an annual musical fireworks competition in [[Vancouver]], [[British Columbia]], [[Canada]]. In 2007 HSBC announced it would be a sponsor of the [[NHL|National Hockey League's]] [[Vancouver Canucks]] and [[Calgary Flames]]. HSBC has also sponsored a professional gaming team that was disbanded late 2007.
HSBC will sponsor the British and Irish Lions on the 2009 tour of South Africa.
HSBC is the official banking partner of the Wimbledon Tennis Championships, providing banking facilities on site and renaming the Road to Wimbledon junior event, as The HSBC Road to Wimbledon National 14 and Under Challenge.<ref>[http://aeltc.wimbledon.org/en_GB/about/infosheets/officialsuppliers.html]</ref>
==Corporate governance==
===Executive pay===
As of 2005 CEO [[Michael Geoghegan]] was earning over £700,000 (over [[US$]]1.4 million) per year, and Chairman Sir [[John Bond (banker)|John Bond]], who retired in 2006, was earning $1.8 million. HSBC made record profits in the 2004-2005 year earning over 12 billion GB Pounds or more than $20 billion.{{Fact|date=April 2008}}
===Household acquisition===
In [[2003]] HSBC completed its controversial acquisition of [[Household International]], after Household settled on charges of [[predatory lending]]. 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".<ref>[http://www.thebanker.com/news/fullstory.php/aid/769/Sir_John_Bond_lays_bare_HSBC%92s_strategy_for_gaining_ground.html "Sir John Bond lays bare HSBC’s strategy for gaining ground"]</ref> HSBC is expanding the Household International [[consumer finance]] model to Brazil, India and elsewhere.
On May 17 2008 HSBC has acquired IL&FS Investment Ltd a leading listing retail broking firm in India.<ref>[http://abclive.in/abclive_business/hsbs-il_fs.html HSBC Buys 73.21 percent Stake in IL&FS]</ref>
==Customer groups==
HSBC splits its business into four distinct groups:
===Personal financial services===
HSBC provides more than 100 million customers world-wide with a full range of personal financial services, including [[demand account|current]] and [[savings account]]s, [[mortgage loan]]s, car financing, [[insurance]], [[credit card]]s, [[loan]]s, [[pension]]s and [[investments]].
===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 proprietorship|sole proprietors]], [[partnership]]s, [[club]]s and [[Voluntary association|associations]], [[corporation|incorporated businesses]] and [[corporation|publicly quoted companies]].
===Global banking and markets===
This customer group provides tailored financial services to [[corporation|corporate]] and [[institutional client]]s. Business lines comprise Global Banking, Global Markets, Global Asset Management, Global Research and Principal Investments.
This division was previously known as Corporate, Investment Banking and Markets.
===Private banking===
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 HSBC Guyerzeller and the private banking activities of HSBC Trinkaus & Burkhardt, 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.
==History==
For the history of the HSBC Group prior to the founding of HSBC Holdings plc in 1991, see [[The Hongkong and Shanghai Banking Corporation]].
[[Image:Bund at night.jpg|left|thumb|250px|The Hongkong and Shanghai Banking Corporation building on [[The Bund]] (with the round dome, currently houses the Shanghai Pudong Development Bank).]]
*1991 - shares are listed on the [[London]] and [[Hong Kong]] stock exchanges.
*1992 - acquisition of [[Midland Bank]] in the [[United Kingdom]].
*1993 - the headquarters of HSBC Holdings moves from [[HSBC Main Building, Hong Kong|1 Queens Road Central, Hong Kong]] to [[10 Lower Thames Street, London]].
*1997 - acquisition of [[Roberts SA de Inversiones]] of [[Argentina]] and [[Banco Bamerindus]] of [[Brazil]].
*1999 - acquisition of [[Republic New York]]; shares are traded on a third stock exchange, the [[New York Stock Exchange]], as [[American Depositary Receipt]]s (ADRs).
*2000 - acquisition of [[Crédit Commercial de France]]; shares are traded on a fourth stock exchange, [[Euronext]] in Paris.
*2001 - acquisition of [[Demirbank]] of [[Turkey]].
*2002 - acquisition of [[Grupo Financiero Bital, SA de CV]] of [[Mexico]].
*2003 - the headquarters of HSBC Holdings moves from [[10 Lower Thames Street, London]] to [[8 Canada Square]], London.
*2003 - acquisition of [[Household International]].
*2003 - acquisition of [[Polski Kredyt Bank SA]] of [[Poland]].
*[[2003]] - [[November 20]], terrorist attack: a [[2003 Istanbul Bombings|bomb blast]] in [[Istanbul]] damaged the bank’s head office in [[Turkey]], causing several deaths and hundreds of injuries.
*2004 - acquisition of [[The Bank of Bermuda]] of [[Bermuda]]; shares are traded on a fifth stock exchange, the Bermuda Stock Exchange.
*2004 - acquisition of [[Marks & Spencer]] Retail Financial Services Holdings Ltd.
*2004 - acquisition of 19.9% of the [[Bank of Communications]] of [[Shanghai]].
*2005 - acquisition of [[Metris Companies, Inc]].
*2005 - acquired 70.1% of [[Dar Es Salaam Investment Bank]], having begun negotiations earlier in the year. The [[Coalition Provisional Authority]] originally granted HSBC along with [[Standard Chartered]] and [[National Bank of Kuwait]] licences to operate in [[Iraq]].
*2006 - announcement of pre-tax profits of £11.91 billion, a record for a British bank.{{Fact|date=June 2008}}
*2006 - acquisition of [[Banca Nazionale del Lavoro]] of [[Argentina]] adds 90 branches to the South American business.
*2006 - acquisition of [[Grupo Banistmo]], the largest financial services company in [[Central America]], based in [[Panama]].
*2007 - acquisition of [[Banex]] in [[Costa Rica]].
*2007 - acquisition of [[The Chinese Bank]] in [[Taiwan]].
== Controversy ==
In July 2007, HSBC suddenly withdrew its interest-free overdrafts for students. Students graduating that year discovered that they were to face unexpected bills of up to £140 a year <ref>[http://www.guardian.co.uk/money/2007/aug/25/moneysupplement.studentfinance Now it's Facebook vs HSBC]</ref>. Students mobilised protests using the social networking website [[Facebook]], and in August HSBC reversed its policy <ref>[http://education.guardian.co.uk/students/finance/story/0,,2159178,00.html Students celebrate Facebook triumph over HSBC]</ref>, freezing overdraft charges to recent graduates and pledging to repay charges deducted in August while holding talks with the [[National_Union_of_Students_%28United_Kingdom%29 | NUS]].
In April 2008, HSBC confirmed it had lost unencrypted data disks containing the life insurance policy details for 370,000 of its customers.<ref>[http://www.guardian.co.uk/business/2008/apr/08/hsbcholdingsbusiness.banking "HSBC loses disk with policy details of 370,000 customers"], ''[[The Guardian]]'', April 8, 2008</ref>
==See also==
*[[Banks of the United Kingdom]]
*[[List of buildings and structures in Hong Kong]]
*[[HSBC Building]]s
*[[Primary dealers]]
== References ==
{{reflist}}
==External links==
* [http://www.hsbc.com/ HSBC Group site]
* [http://www.hsbcprivatebank.com HSBC Private Bank]
* [http://householdwatch.com/ HSBC Consumer Advocacy Group]
* [http://www.reviewcentre.com/search.html?searchstring=hsbc/ HSBC Review Centre]
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