...Connecting customers to opportunities for 150 years HSBC Holdings plc Strategic Report 2014 Overview 1 1 2 3 4 7 t Who we are Our purpose Cautionary statement regarding forward-looking statements Highlights Group Chairman’s Statement Group Chief Executive’s Review Strategic objectives 9 Value creation and long-term sustainability 10 HSBC Values 11 Our strategy Business model 12 Market presence 13 Organisation 15 Governance 16 Global businesses 18 Employees 21 Risk overview Strategic priorities 26 Grow the business and dividends 26 Implement Global Standards 28 Streamline processes and procedures Outcomes 28 Financial performance 34 Remuneration 36 Sustainability Directors 40 Directors Supplementary information 42 Status of the Strategic Report 2014 42 Copies of the Annual Report and Accounts 2014 42 Shareholder enquiries and communications 43 Report of the auditor The Strategic Report 2014 forms part of the Annual Report and Accounts 2014 for HSBC Holdings plc and is not the Group’s statutory accounts. It does not contain the Report of the Directors and it does not contain sufficient information to allow as full an understanding of the results and state of affairs of the Group and of its policies and arrangements concerning Directors’ remuneration as would be provided by the full Annual Report and Accounts 2014. Additional information, including commentary on 2013 compared with 2012, may be found in the...
Words: 30003 - Pages: 121
...Unethical Corporate Governance (HSBC Money Laundering Case: “Too Big to Fail” does not mean “Too Big to Jail”) About HSBC HSBC Holdings plc is a British multinational banking and financial services company headquartered in London, United Kingdom. It is one of the world’s largest banking and financial services organizations. In 1865, the first branches of the bank were first opened in Hong Kong and Shanghai. HSBC is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited. In 1991, it was founded in London by the Hongkong and Shanghai Banking Corporation to act as a new group holding company. The company refers to both the United Kingdom and Hong Kong as its "home markets". HSBC has around 7,200 offices in 85 countries and territories across Africa, Asia, Europe, North America and South America, and around 89 million customers. As of 31 December 2013, it had total assets of $2.671 trillion, of which roughly half were in Europe, the Middle East and Africa, and a quarter in each of Asia-Pacific and the Americas. As of 2012, it was the world's largest bank in terms of assets and sixth-largest public company, according to a composite measure by Forbes magazine (Witty Traders, 2014). HSBC consists of four business groups: * Commercial Banking; * Global Banking and Markets (investment banking); * Retail Banking and Wealth Management; * Global Private Banking. HSBC has a dual primary listing on the Hong Kong Stock Exchange and London...
Words: 3308 - Pages: 14
...Introduction 3 1.0 Analysis on capital management based on Basel III 3 1.1 Potential risk determinants 3 1.1.1 CRAR based on Basel III 3 1.1.2 NPL perspective 4 1.1.3 Internal risk control system 4 1.1.4 The fund sourcing exploration through finance innovation 5 1.2 The risk identification 5 1.2.1 Risk of local government financial platform 5 1.2.2 NPL and Due Diligence Investigation 5 1.2.3 Risk of lending to SMEs and Derivative Deposit problems 5 1.2.4 Risk of collateral assets auctions 6 2.0 Analysis on internationalization of operation overseas 6 2.1 Key factors identification and comparison 6 2.1.1 Operation efficiency on ROA and ROE perspective 6 2.1.2 Operation scale and scope 7 2.2 Government potential influence on policies and regulation 8 2.3 Challenge and Risk based on the analysis 8 2.3.1 Strategic partnership with developed bank 8 2.3.2 Human Resource management 8 3.0 Analysis on internationalization of interest rate liberalization 8 3.1 Government potential influence on policies and regulation 9 3.2 Comparison between Chinese Mainland banks and HSBC 9 Conclusion 9 Appendices 11 Reference 13 Introduction From 2013, the trend of catching up with international standard and increasing Chinese banking competitiveness is under the agenda of PBOC through the frequent policies transformation and the corresponding applications with more focusing on risk generated by shadow banking and internet finance...
Words: 2792 - Pages: 12
...Many causes, involving many different actors, have been identified. Some have likened the big melt to a “ perfect storm” where a number of storm systems just happened to combine to form a much larger, lethal storm. But one cause was the failure of decision- making models, both the model builders and the financial man-agers who relied on those models. One of the major players in this crisis was HSBC Holdings PLC, the third largest bank in the world based on market value, and the largest bank in Europe. In the financial meltdown of 2008— 2009, HSBC joined the other major money center banks in a collective failure. HSBC weathered the turmoil in the financial markets better than most of its rivals, mainly because it had profited from continuing growth in Asia, where it generates about 65 percent of its pretax profit. But the company’s stock prices have fallen by half from their pre- crisis high, and HSBC had to shed over 6,000 employees, close over a thousand branches worldwide, and write off its mortgage generating unit in the United States called Household International. Senior managers at HSBC had observed the incredible rise in U. S. home prices in the period 1990— 2000, and closely followed the subprime mortgage market which drove home sales ever higher in the...
Words: 2198 - Pages: 9
...History: The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between Europe, India and China. The inspiration behind the founding of the bank was Thomas Sutherland, a Scot who was then working for the Peninsular and Oriental Steam Navigation Company. He realized that there was considerable demand for local banking facilities in Hong Kong and on the China coast and he helped to establish the bank, which opened in Hong Kong in March 1865 and in Shanghai a month later. Soon after its formation the bank opened agencies and branches around the world. Although that network reached as far as Europe and North America, the emphasis was on building up representation in China and the rest of the Asia-Pacific region. HSBC was a pioneer of modern banking practices in a number of countries. In Japan, where a branch was established in 1866, the bank acted as adviser to the government on banking and currency. In 1888, it was the first bank to be established in Thailand, where it printed the country’s first banknotes. From the outset trade finance was a strong feature of the local and international business of the bank, an expertise that has been recognized throughout its history. Bullion, exchange, merchant banking and note issuing also played an important part. By the 1880s, the bank was acting as banker to the Hong Kong government and also participated in the management of British...
Words: 3659 - Pages: 15
...Assignment on Management Practices of \ ___________________________ ACKNOWLEDGEMENT First and fore mostly we would like to thank the Almighty Allah who blessed us with knowledge, understanding and ability to do this report. We are indebted to many people for providing us encouragement and support during our learning and working while making this report and we want to show our gratefulness to these people. We are very much grateful to Ms. SharminAkther, our respected course instructor of MGT101 (Principal of Management), who assigned us this challenging work. She always guided us to take and overcome this challenge successfully. Without her help in every step it was quite impossible for us to finish this report properly in time. We are also grateful to AKM Ahsan Habib, Team leader, Retail Banking and Wealth Management, and Othish Asif Rahman, Relationship Officer HSBC Select for giving us valuable information. Table of Content Topic | Pages | Chapter # I: Introduction | 01-02 | Brief History of HSBC | 01-2 | Chapter # II: Main Body | 03-17 | Management Function * Planning * Organizing * Leading * Controlling | 03-1303-0707-0910-1111-12 | Chapter # III: Conclusion | 12-15 | References | | | | Introduction The Hongkong and Shanghai Banking Corporation Limited is a prominent bank established and based in HongKong since 1865 when Hong Kong was occupied by British drug traders and made a colony of the British Empire. It...
Words: 3452 - Pages: 14
...Task 11 (D2) Accounting ratios and monitoring business performance Ratio analysis can be used as a management tool to monitor and improve the performance of HSBC as well as being used by those outside of the organisation such as bank regulators, potential shareholders and suppliers to look at the performance of HSBC and compare it with other similar organisations. Information used for comparison must be accurate - otherwise the results will be misleading. There are four main methods of ratio analysis - liquidity, solvency, efficiency and profitability. If ratios of companies are to be compared it is important that the companies are in the same industry. It would be appropriate to compare HSBC ratios with other the ratios of other banks but not for example a construction company. Liquidity ratios These ratios should be used on a daily basis by management to monitor performance and manage cash flow risks. There are three types of liquidity ratio: * Current ratio - current assets divided by current liabilities. This assesses whether you have sufficient assets to cover your liabilities. A ratio of two for example shows you have twice as many current assets as current liabilities. * Quick or acid-test ratio - current assets (excluding inventory) divided by current liabilities. A ratio of one shows liquidity levels are high - an indication of solid financial health. * Defensive interval - liquid assets divided by daily operating expenses. This measures how long...
Words: 1053 - Pages: 5
...group has chosen Perpetual Investor Choice Fund for the long term investment. There are a variety of reasons as to why we chose Perpetual fund over the rest and they will be explained below. The first and foremost are the excess returns after entry fees and management fees. Fund | UBS | Perpetual | HSBC | Merrill | 5 year return | 11.90% | 13.81% | 7.83% | 8.24% | Benchmark Return | 9.24% | 9.24% | 9.24% | 9.22% | Excess return | 2.66% | 4.57% | -1.41% | -0.98% | Figure 1: Table of Excess returns before computation of entry and management fees Figure 1 shows the excess returns that the respective fund managers achieved for the period of year 2000-2004. All returns have been annualized for comparison. It is shown that Perpetual fund managers outperform their benchmark by 4.57%, which is almost 50% higher than the nearest competitor, UBS funds. A mutual fund traditionally has management and entry fees, which affect the actual net return an investor receives. It should be noted that the Perpetual Fund has one of the highest entry and management fees which are 4% and 1.95% respectively. Nevertheless, it still manages to outperform the benchmark and its competitors. At this juncture, it should be noted that HSBC Imputation Fund and Merrill Lynch Australian Shares Fund have been ruled out in our selection, as they are not able to match the benchmark. Taking a closer look at UBS and Perpetual, Figure 2 below shows that UBS has not achieved its investment aim of beating...
Words: 2742 - Pages: 11
...in high-growth emerging markets like China and leveraging RMB to gain that vital competitive advantage. Background Telco, with its Head office based in London, began life as a manufacturer of wire-line equipment for the Western European aerospace sector. Following the privatisation of national telecoms operators from the late 1980s, it refocused its business to supply carriers in Europe and the US. Telco has been an HSBC client for more than ten years, after finding that domestic banks could not match its international expansion strategy. HSBC’s global network supported its exports growth across new markets by supporting all Telco’s export invoices. Rolling waves of telecoms deregulation saw Telco and other suppliers enter the mobile handset market in the 1990s, attracted by the significant growth opportunities. The intense competition and tightening margins in equipment supply – not least the demand from emerging markets – saw Telco make its first trip to China on a sourcing mission for basic components. Building a business In China At the company’s request, HSBC relationship managers helped guide Telco’s entry into China by working with professional advisors in the Far East to design a tailored business structure and business strategy. The bank also nominated a local Chinese relationship manager to ensure its business would be well looked after in the market. With the RMB currency market closed at that time, Telco and other foreign businesses in the market were invoiced by Chinese...
Words: 1568 - Pages: 7
...Applied Research Project Course: IS 535 Submitted: 04/14/2011 Introduction HSBC is one of world’s largest banks with electronic commerce, which consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. With HSBC, the amount of trade conducted electronically has grown significantly with widespread Internet usage. ("HSBC" 2009) The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well. ("HSBC," 2009) A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web. Electronic commerce that is conducted between businesses...
Words: 1752 - Pages: 8
...CODE: MBD 107. SEMESTAR: 1ST SUBMITTED BY SOUMYA KANTI BOSE ENROLLMENT NO: DDE/MBA/JUL2013/14. REGISTRATION NO: APPLIED FOR. SESSION: JULY 2013 - JUNE 2015. INDEX PARTICULARS | PAGE NO | Introduction | 03 | Objectives of Study | 03 | World Scenario in Corporate Governance | 03 | Indian Scenario in Corporate Governance | 03-04 | Corporate Governance Practices By State Bank of India, India | 04-05 | Corporate Governance Practices By Axis Bank Ltd, India | 05-13 | Corporate Governance Practices by National Australia Bank, NAB | 13-18 | Corporate Governance By HSBC, London | 19-23 | Conclusion | 23 | Reference | 23 | Introduction: The issue of corporate governance has come up mainly in the wake up economic reforms characterized by liberalization and deregulation. Corporate governance has at its backbone a set of transparent relationships between an institution’s management its board, shareholders and other stakeholders. Corporate governance has come up mainly in the wake up of economic reforms characterized by liberalization and deregulation. According to OECD, the corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders and it also spells out the rules and procedures for making decisions on corporate affairs. Corporate governance is exclusively of board of directors in a manner that it becomes a way of organizational...
Words: 8238 - Pages: 33
...request for analyzing and presenting the performance, activity, office policies, strategy, operation and importance of the group. It contains information about HSBC group, its organizational structure and also commercial awareness details. In the first sections I have included a brief history and an overview of HSBC today. In the following chapters I have talked in details about its structure and police offices. The last section brings information about its revenue, net profit and future plans. It has been pleasure and challenge working on this report. Please feel free to contact me in case of clarification or queries on this report. Kind Regards, HSBC I. History HSBC has a rich history, which starts back in 1865. It was established in Hong Kong and, two months later, in Shanghai by Thomas Sutherland and it started from a basic idea: to support trade between Asia and Europe. By 1900 it was extended in Europe and North America, Japan, Thailand, India, Philippines, Singapore, Sri Lanka, Malaysia and Vietnam. During Second World War, the group had to close branches and to move for a while its head office from Hong Kong to London. After the war, it played a key role in reconstructing the Hong Kong economy. In 1992 it acquired Midland Bank and became the biggest financial services organization in the world. HSBC continued to grow all this time and made lots of acquisitions and established a network of branches around the world. It had ups and downs, but it has built...
Words: 2704 - Pages: 11
...his/her bank account. Online banking also facilitates buying and selling various products which varies country to country. In Bangladesh many banks have launched Online banking. Amongst those HSBC, City Bank, BRAC Bank, Bank Asia, Jamuna Bank, Janata Bank, Southeast Bank, AB Bank, First Security Bank, Mercantile Bank, Premier Bank etc are in action already. Some are known as online banking, some are Online banking, providing various facilities. Like City Bank has the facility of account check and statement print including query about cheque book information. Bank Asia has almost same facilities but with addition they have internal fund transfer facility along with bill payment and mobile phone recharge which are, in fact quite handy. Mercantile bank has a schedule for online banking. It is Sunday to Thursday, 9am-3pm. They have the facility of money transaction, deposit and withdrawal though they charge a particular amount for each transaction according to their policy, it is a relief if you don’t have to go to bank for depositing and drawing money, isn’t it? HSBC and BRAC Bank are clearly not satisfied with the transaction thing only in online banking. They thought of something more and desiring and customized the service to its best for their clients and getting better day by day. HSBC has a whole lot of...
Words: 8243 - Pages: 33
...customers a truly global perspective built upon local knowledge and expertise. HSBC sponsors sports which represent our core values and allow us to connect with local communities at a grass roots level HSBC Key Facts * Founded in 1865 * Headquartered in London * Around 6,600 offices in 80 countries and territories within HSBC's international network * One of the largest banking and financial services organisations in the world * Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges. Our objective is to become the world’s leading international bank. Our strategy is aligned to two long-term trends: * The world economy is becoming ever more connected, with growth in world trade and cross-border capital flows continuing to outstrip growth in average gross domestic product. Over the next decade we expect 35 markets to generate 90 per cent of world trade growth with a similar degree of concentration in cross-border capital flows. * Of the world’s top 30 economies, we expect those in Asia-Pacific, Latin America, the Middle East and Africa to increase in size approximately four-fold by 2050, benefiting from demographics and urbanisation. By this time they will be larger than those of Europe and North America combined. By 2050, we expect 18 of the 30 largest economies will be from Asia-Pacific, Latin America or the Middle East and Africa. HSBC is one of the few truly international banks. Our advantages lie in the extent to which...
Words: 1255 - Pages: 6
...countries. The commercial banks still operate separately at present according to the law. Being the important part of Chinese financial market, the Industrial and Commercial Bank of China (ICBC) as one of the big-four state-owned commercial banks should make an important decision on whether or not fully introduce the mixed operation for operating in UK. This study analyzes the difference of the operation model of HSBC and ICBC are operating in the UK at present, and examines the advantages and disadvantages of both separated and mixed operation for ICBC (London). Furthermore, it proposes the realistic choice of operation model for ICBC (London) under the existing Chinese financial system and the market condition of UK. This paper argues that the separated operation model of ICBC and investment banks in the short term will not change. The internally integrated operation model in terms of mixed operation which through restructuring to concurrently operate investment bank business within the ICBC (London), should be the realistic choice. The operating advantages in terms of low risk and high efficiency of the Group Banking form will be the development orientation for ICBC (London). Chapter 1 1. Introduction 1.1...
Words: 9211 - Pages: 37
