Simple Information about HSBC

Simple Information about HSBC

When it comes to banking success, experts cannot discount the premier performance of Hongkong Shanghai Banking Corporation Limited, known today as the HSBC Holdings, plc. It was in 1865 when Scotsman Sir Thomas Sutherland, a banker and a liberal politician, realized the need to have a banking facility and system in Hongkong to aid its growing and promising trade with China and Europe. Shortly after the United Kingdom established a colony in Hongkong, Sir Thomas Sutherland put up the first HSBC bank. Just a month after the establishment of its pilot branch, HSBC opened a branch in Shanghai and in less than 3 decades right after its founding, HSBC had already put up branches in Japan, Thailand, Europe and in North America. At the end of the century, HSBC became the most well-known and trusted banking and financial institution in Asia. From then on, Hongkong served as the seat of its banking operations, holding the bulk of its asssets, until 1992 when it was forced to move to London as a condition of completing the acquisition of Midland Bank. When HSBC was done with its incorporation as a public limited corporation in England in 1992, the letters plc were attached to its name, thus the HSBC Holdings, plc we know today. Since then the bank holds its headquarters in London and hold as well more than 50 percent of its assets.

So much to the success of this institution that people entrust their hard earned money in this bank, its local presence all over the world also makes the banking transaction more easy and convenient for the clients. With 4,692 offices in the Americas ( includes mainland USA and Latin America ), 1,028 offices in Asia Pacific, 2,598 offices in Europe and 275 offices in the Middle East and Africa, clients will surely find easy access to their daily banking needs anytime and anywhere in the globe. Surely, it is but right for HSBC to be tagged as the “world's local bank”.

In the turn of times, transactions with HSBC had significantly evolved as it ascends the ladder of industrial success. Although it still caters the usual and normal bank transaction on a daily basis, some new products and services are now offered.In line with the advent of the so called e-commerce, the bank's services now span from personal over the counter banking to international online transactions. As technology improved, banking transactions relatively improved as well and the bank ventured on different innovative product that aims to help their clients conduct their business with ease. These latest business initiatives were conceived with the aim of helping the businessmen to bring their business to its highest potentiality along with its guarantee of securing the clients interests. Personal banking is one of its services that had drawn many patrons. In personal banking, whether you are embarking on a new business or running a business for many years, HSBC can assist you with expertise based on your business needs. For this particular product, the bank provides business bank accounts, business credit card, online banking, tele-banking, a full range of business insurances, cash management, trade finance, savings and investments, loans, commercial mortgages and overdrafts. This is particularly ideal for small business ventures whose capital investments are not yet stable and needs to manage their costs.

Corporate banking, another product of HSBC, though sounds a little familiar, has its new facet with HSBC's initiative. The presence of HSBC banks worldwide made it more capable than ever to assist their clients and their respective business strategies anywhere in the world. The bank's team of expert will secure the client's foreign business interests following the client's own peculiarity. Included in this product are collection management, financing, foreign exchange, global markets, insurance, internet banking, investments, payments and cash management, retirement and pensions, risk management, securities services, trade services and working capital and liquidity management.

International banking, on the other hand, is another product of HSBC, which is proven to be a very helpful and useful tool for businesses engaged in multi-market import and export activities. Services included in this product are making and receiving international payments, global cash management, international risk management, international business traveler and importing and exporting. These are just a few of the products and services offered by HSBC, needless to say, whatever size of business you have, here or abroad, HSBC is just right in the locale. Just imagine how convenient it is to see your business transactions running smoothly without necessarily pinning your head to do and worry on all of those things. Some banks does offer this kind of service too, but expertise is always an edge.

Not only is HSBC active in the conduct of its business ideals and pursuit of it vision. It is also actively involved in its corporate social responsibility as a vital part of its industrial success. In 2005, HSBC become carbon neutral, which means that their buildings and establishments all over the world contribute zero net carbon dioxide into the atmosphere. The bank is also involved in policy making regarding how to save the planet against the disastrous effects of climate change through its campaign on minimizing environmental damage and conserving natural resources. It contributes to environmental sustainability through it “ Investing in Nature” partnership which HSBC supports three leading charities namely Botanical Gardens Conservation International (BGCI), Earthwatch Institute and WWF. The bank also sponsors projects aimed at promoting sports among the youth as well as projects on giving the less fortunate children access to get free education.

Through its employee volunteering initiative, the bank also provides practical and financial support to young people. Its also funds a program that supports students from low-income families in gaining access to top high schools. This incorporates special sessions in mathematics, english, writing, science and some curricular activities.

Worthy to make mention is the employment that the company provides as they expand its operation. Unemployment, therefore, a problem as it is, is also addressed by the company. These activities are notably corporate social responsibility in its literal sense.

In 2008, HSBC operates in 86 countries with 331,458 people under its employ, 210,000 shareholders and 128 million customers worldwide. The bank is still aggressively growing, moving up the scale and boasts its dominance in the world's banking and financing industry. Arguably, HSBC has the most international presence among the world's multinational banking giants. But just like any other business entity, HSBC was not spared from a business disaster. It also shared a lump of the economic downturn. In 2002 HSBC spent U$$15.5 billion to acquire Household Finance Corporation, a US credit card issuer. The takeover resulted in the creation of HSBC Finance arm, but after a year, the business tuned sour leading to its shut down with almost 60,000 job losses. It was a mistake for HSBC to take over Household Finance Corporation that time when economic crisis was lurking that triggered the clients to acquire loans and credits. However with the resolved spirit of the minds behind the bank operation, its company's credit discipline, its financial strength, and global asset diversification, HSBC stood back from that short fall down and recovered after a few years. Being in the game for so many years now, the bank has somehow got familiar with the wide variety of resilient economy all over the world and know pretty well how to deal with it when occasion calls. HSBC indeed did their homework pretty good that tit even sees opportunities in the face of global economic crisis.

As more years come and go for the banking industry, HSBC continues to strive and strive even harder to give the best to its clients and to the economy. Customer satisfaction and professional service always come first when it comes to business and fair enough HSBC had proved that its all worthy of their client's trust. Soon, in no time, HSBC will materialize its vision to be the world's leading financial service company.

Budget of HSBC

In 2008, Hongkong Shanghai Banking Corporation plc, has U$ 137.309 billion in revenue, U$ 56.384 billion operating income, U$ 6.498 billion net income and an amassed total asset amounting to U$ 2.527 trillion. These figures is what makes HSBC plc to be the world's largest banking group and the world's 6th largest company, not to mention the holder of the largest amount of deposits in the world.

At present, 55 percent of HSBC's assets are in Europe, 23 percent in Asia Pacific, 26 percent in North America and 4 percent in Latin America. This geographical diversification indeed proved to be HSBC's most effective strategy in staying financially strong and resting on top despite the presence of economic crisis.

Seeing this statistics, both investors and customers are likely to entrust their banking transactions with HSBC. With its international presence, financial stability and traditional credit discipline, HSBC is far from being shattered.

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