The Hongkong and Shanghai Banking Corporation - Assignment Point
The Hongkong and Shanghai Banking Corporation
Subject: Organizational Behavior | Topics:

 An Overview of HSBC Group

Headquartered in London, HSBC Holdings plc is one of the world’s largest banking and financial services organizations, with major consumer, commercial and investment banking and insurance businesses. The HSBC Group evolved from The Hongkong and Shanghai Banking Corporation Limited (Hongkong Bank), which was founded in Hong Kong with offices in Shanghai and London and an agency in San Francisco. The HSBC Group international network comprises more than 5,500 offices in 81 countries and territories, operating under well-established names in the Asia-Pacific region, Europe, the Americas, the Middle East and Africa. With primary listings on the London and Hong Kong stock exchanges, shares in HSBC Holdings plc are held by some 160,000 shareholders in more than 90 countries and territories. In the United States, investors are offered a sponsored American Depository Receipt program. Through a global network linked by advanced technology, the Group provides a comprehensive range of financial services: personal, corporate, investment and private banking; trade services; cash management; treasury and capital markets services; insurance; consumer and business insurance; pension and investment fund management; trustee services; and securities and custody services, The HSBC family is comprised of over 130,000 employees representing 81 countries and territories   Following are the principal members of the Group,

COMMERCIAL BANKINGINVESTMENT BANKINGOTHER FINANCIAL SERVICES
Banco HSBC

Bamerindus

HSBC Asset

Management

Forward Trust
British BankHSBC Equator BankHSBC financial

Institution

First DirectHSBC Investment

Bank

HSBC Gibbs
Hang Seng BankHSBC Investment

Bank Asia

HSBC Global payment and Cash Management
Hongkong BankHSBC Private BankingHSBC Insurance
Hongkong Bank of

Australia

HSBC SecuritiesHSBC Markets
Hongkong Bank of

Canada

Trinkaus &BurkhardtHSBC Trade Services
Hongkong Bank of

Malaysia

  
HSBC Bank of Roberts  
Marine Midland Bank  
Midland Bank  

However, many of the members have changed their name into HSBC, The Hongkong and Shanghai Banking Corporation Limited to introduce the whole group under one brand name. 

 Key Developments of HSBC Group

Founded in 1865 in Hong Kong, this Group expanded primarily through offices established in Hongkong Bank’s name until the mid-1950s when it began to create or acquire subsidiaries. This strategy culminated in 1992 with one of the largest bank acquisitions in history when HSBC Holdings acquired Midland Bank, which was founded in the UK in 1938. The following are some key developments in the Group’s growth since 1959.

1959:               Hongkong Bank acquires The British Bank of Middle East (formally the Imperial Bank of Persia) and The Mercantile Bank (originally the Chartered Mercantile Bank of India, London and China), which is subsequently integrated into Hongkong Bank.

1960:               Wayfoong Finance, a Hongkong Bank hire purchase and personal finance subsidiary, is established.

1965:               Hongkong Bank acquires a majority shareholding in Heng Seng Bank, now the second largest bank incorporated in Hongkong.

1967:               Midland Bank purchases a one-third share in the parent of London merchant bank Samuel Montagu.

1971:               The Cyprus Popular Bank Limited (now Laiki Bank) becomes an associated company of the Group.

1972:               Hongkong Bank forms a merchant banking subsidiary, Wardley(now called HSBC Investment Bank Asia ), and an insurance subsidiary, Carlingford (now HSBC Insurance).Midland Bank acquires a share-holding in UBAF Bank (now known as Arab Commercial Bank).

1973:               Samuel Montagu becomes a wholly owned subsidiary of Midland.

1978:               The Saudi British Bank is established under local control to take over The British Bank of the Middle East’s branches in Saudi Arab.

1979:               Hongkong Bank acquires 51% of New YorkState’s Marine Midland Bank Antony Gibbs becomes a wholly owned subsidiary. Midland acquires a controlling interest in leading German private bank Trinkaus & Borkhardt.

1980:               Hongkong Bank of Canada is established in Vancourver. The Group acquires a controlling interest in Equator Holdings.

1981:               Egyptian British Bank is formed, with the Group holding a 40% interest.

1983:               Marine Midland Bank acquires Carroll McEntee & McGinly (now HSBC securities (USA) Inc), a New York based primary dealer in US Government securities. The Cyprus Popular Bank becomes an associated company of the Group.

1986:               Hongkong Bank established Hongkong Bank of Australia, and acquires James Capel, a leading London based international securities company.

1987:               Hongkong Bank acquires the remaining shares of Marine Midland and a 14.9% Equity interest in Midland Bank.

1988:               Strategy alliance is entered into between Hongkong Bank and California-based Wells Fargo Bank. Midland Bank launches First Direct, the UK’s first 24-hour organization’s telephone banking service.

1989:               A strategic alliance is entered into between The HongKong and Shanghai Banking Corporation and California – based wells Fargo Bank. Midland Bank launches First Direct, the UK’s first 24-hour organization’s telephone banking Service.

1991:               HSBC Holding is established; its shares are listed on the London and Hong Kong stock exchanges.

1992:               HSBC Holdings purchases the remaining equity in Midland Bank. HSBC Investment Banking is formed.

1993:               The HSBC Group’s Head Office moves to London. Forward Trust, a Midland subsidiary, acquires Swan National Leasing, established the UK’s third largest vehicle contract hire company.

1994:               Hongkong Bank is the first foreign bank to incorporate locally in Malaysia, forming Hongkong Bank Malaysia Berhad.

1995:               Wells Fargo & Co. and HSBC Holding establish Wells Fargo HSBC Trade Bank in California to provide customers of both companies with trade finance and international banking service.

1997:               Marine Midland Bank acquires First Federal Savings and Loan Association of Rochester in New York.

1999:               Shares in HSBC Holdings begin on a third stock exchange, New York. HSBC Holdings acquires Republic New York Corporation (now integrated with HSBC USA Inc.) and its sister company Safra Republic Holdings S.A. (now HSBC Republic Holdings (Luxembourg) S.A.).Midland Bank acquires a 70% interest in Mid-Med Bank p.l.c. (now called HSBC Bank Malta p.l.c.), Malta’s largest commercial bank.

2000:               HSBC and Merrill Lynch form a joint venture to launch the first international online banking and investment service company. HSBC reaches an agreement in principle to acquire 75% of the issued shares of Bangkok Metropolitan Bank, the eight largest banks in Thailand. HSBC acquires Credit Commercial de France (CCF) a major French banking group. Share as in HSBC holdings are listed on the organization’s stock exchange, in Paris.

2001:               Agreement is reached for HSBC to acquire Barclay’s Bank’s branches and fund Management Company in Greece. CCF is chosen by the French Government to acquire Banque Hervet, a regional bank in France. HSBC Finance (Brunei) Berhad signs an agreement to acquire IRB Finance Berhad, a Finance company in Brunei.

2002:               The Hongkong HSBC’s joint venture with Merrill Lynch to provide online investment and banking services to ‘mass affluent’ investors is integrated into the HSBC Group and continues to operate as Merrill Lynch HSBC. HSBC acquires the corporate banking and trade finance business of State Street Bank and Trust Company’s Global Trade Banking Australia business; Benkar Tuketici Finansmani ve Kart Hizmetleri A.S., a leading provider of consumer finance in Turkey; and Grupo Financiero Bital S.A. de C.V., one of Mexico’s largest financial services groups. HBSC purchases a 10% interest in Ping An Insurance Company of China Limited, the second largest life insurance operation in China; and agrees to acquire Household International, Inc., a leading US consumer finance company operating in 46 states.

2003:               CCF agrees to increase its stake in French private bank Banque Eurofin SA to 71.21%, and to acquire a further two branches of Banque Worms in France, bringing the total number purchased to 13. HSBC acquires Keppel Insurance Pte Ltd, a provider of life insurance and Islamic insurance in Singapore; and increases its shareholding from 60% to 100% in Equator Holdings Limited.

Global Coverage of HSBC

HSBC is truly the World’s Local Bank, in a number of ways. The global presence of HSBC makes it really large banking institution. The following table clearly shows that the brand HSBC can be found in every nook and corner of the third planet of the solar system:

Region

Number of offices

United States of America

2,249

United Kingdom

1,919

Brazil

1,550

Mexico

1,387

France

791

Hong Kong SAR

386

Canada

279

Argentina

197

Turkey

160

Cyprus

150

Saudi Arabia

75

Greece

64

Malta

52

Malaysia

42

Australia

40

India

38

People’s Republic of China

29

Channel Islands

27

Singapore

27

Philippines

23

Taiwan

19

Egypt

17

Panama

16

Switzerland

16

United Arab Emirates

16

Brunei Darussalam

13

Indonesia

13

Mauritius

13

Germany

11

Korea, Republic of

11

South Africa

10

Sri Lanka

10

Ireland

8

New Zealand

8

Bahamas

6

Belgium

6

Italy

6

Lebanon

6

Luxembourg

6

Japan

5

Macau SAR

5

Oman

5

Spain

5

Bahrain

4

Bangladesh

4

Qatar

4

Uruguay

4

British Virgin Islands

3

Cayman Islands

3

Isle of Man

3

Israel

3

Poland

3

Russia

3

Angola

2

Armenia

2

Chile

2

Czech Republic

2

Hungary

2

Jordan

2

Monaco

2

Pakistan

2

Thailand

2

Uganda

2

Vietnam

2

Algeria

1

Azerbaijan

1

Bermuda

1

Cote d’Ivoire

1

Ghana

1

Kazakhstan

1

Libya

1

Maldives

1

Morocco

1

Namibia

1

Netherlands

1

Palestinian Autonomous Area

1

Sweden

1

Venezuela

1

 The following figure shows the percentage distribution of HSBC branches, around the globe.

USA, UK, Brazil. Mexico, France, Hong Kong, Canada, Argentina, Turkey and Cyprus jointly host 93% of the total number of HSBC branches. Bangladesh’s share is only a meager 0.051%.

Vision Statement of HSBC

“We Aim To Satisfy The Organization’s Customers With High Quality Service That Reflects The Organization’s Global ImageAs The Premier International Bank”

Objectives of HSBC

HSBC’s objectives are to provide innovative products supported by quality delivery of systems and excellence customer services, to train and motivate staffs and to exercise community responsibility. By combining regional strengths with group network HSBC’s aim is to be the bank of choice and one of the leading banks in its principle markets. HSBC’s goal is to achieve sustained earnings growth and to continue to enhance shareholders value.

HSBC

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