$204,995,000,000
HSBC Holdings
Net Worth
Started in (City)
London
Started in (Country)
Hong Kong
Incorporation Date
03rd December, 1865
Bankruptcy Date
-
Founders
- Sir Thomas Sutherland
About
HSBC Holdings plc is a British multinational investment bank and financial services holding company. It is the largest bank in Europe, with total assets of US$2.715 trillion (as of August 2020). HSBC traces its origin to a hong in British Hong Kong and its present form was established in London by the Hongkong and Shanghai Banking Corporation to act as a new group holding company in 1991; its name derives from that company's initials. The Hongkong and Shanghai Banking Corporation opened branches in Shanghai in 1865 and was first formally incorporated in 1866.
HSBC has around 3,900 offices in 65 countries and territories across Africa, Asia, Oceania, Europe, North America, and South America, and around 38 million customers. As of 2014, it was the world's sixth-largest public company, according to a composite measure by Forbes magazine. It is considered a systemically important bank by the Financial Stability Board.
HSBC is organized within four business groups: Commercial Banking, Global Banking and Markets (investment banking), Retail Banking and Wealth Management, and Global Private Banking. In 2020, the bank announced that it would consolidate its Retail Banking & Wealth Management arm with Global Private Banking, to form Wealth & Personal Banking.
Beginning
The Hongkong and Shanghai Bank was founded by Thomas Sutherland in the then-British colony of British Hong Kong on 3 March 1865, and in Shanghai a month later, benefiting from the start of trading into China, including opium trading. It was formally incorporated as The Hongkong and Shanghai Banking Corporation by an Ordinance of the Legislative Council of Hong Kong on 14 August 1866. In 1980, HSBC acquired a 51% shareholding in US-based Marine Midland Bank, which it extended to full ownership in 1987. On 6 October 1989, it was renamed by the Legislative Council, by an amendment to its governing ordinance originally made in 1929, to The Hongkong and Shanghai Banking Corporation Limited, and became registered as a regulated bank with the then Banking Commissioner of the Government of Hong Kong.
HSBC Holdings plc, originally incorporated in England and Wales, was a non-trading, dormant shelf company when it completed its transformation on 25 March 1991 into the parent holding company to the Hongkong and Shanghai Banking Corporation Limited now as a subsidiary, in preparation for its purchase of the UK-based Midland Bank and the impending transfer of sovereignty of Hong Kong to China. HSBC Holdings' acquisition of Midland Bank was completed in 1992 and gave HSBC a substantial market presence in the United Kingdom. As part of the takeover conditions for the acquisition, HSBC Holdings plc was required to relocate its world headquarters from Hong Kong to London in 1993.
Major acquisitions in South America started with the purchase of the Banco Bamerindus of Brazil for $1 billion in March 1997 and the acquisition of Roberts SA de Inversiones of Argentina for $600 million in May 1997. In May 1999, HSBC expanded its presence in the United States with the purchase of Republic National Bank of New York for $10.3 billion.
Road to Success
Despite growing in almost eighty countries over the world, HSBC bank has been successful in positioning itself in “world\’s Local bank”. The HSBC bank is working constantly hard to obtain a local feel and knowledge, to make customers feel comfortable and reliable to conduct banking. Consequently, it has ensured high customer loyalty and HSBC has been able to retain its large customer pool.One of the most important key success factors is the ability of HSBC bank to reach a large section of customer through various innovative promotional campaigns, moreover discounts, rebates, relaxing of interest rates on loan during crisis and so forth has helped to achieve popularity. Apart from this HSBC bank focuses on sponsorship activities as well.
HSBC keeps a strong focus on the services that it offers to the customers like personal banking services, consumer finance, commercial banking, corporate investment banking and market, private banking and so forth among 100 million customers spread all over the world in a very professional and efficient way. This professional and efficient attitude has helped to boost up the confidence level of the customers as well to a great extent and its professional attitude towards understanding the different hitherto untapped segments like niche marketing or targeting a specific demographic segment has led to its success story.
Professional and comprehensive training resources provided by the HSBC bank are significant benefits of joining the world’s local bank. The philosophy of HSBC bank is to provide the facilities and resources for their employees to access, in order to meet their learning needs and self-development goals. Specific product and skills training is provided for all levels of professionals in their personal financial services department and corporate banking businesses. Additionally, management training, leadership skills, language and technical skills training, is provided across all departments. For all these support the employees of HSBC are highly skilled and enriched.
These success factors have made HSBC bank to the leading position in world wide. Customers rely on HSBC due to the trust worthiness, brand image, professionalism and so forth. For these success factors HSBC bank established itself through a slogan “World’s local bank”.
HSBC Bank is sound capitalized and the bank has endorsed its performance precisely well against other banks in recent economic functions and events.
The bank has a strong existence in emerging markets and taking the bank in a good position to take preferences of future growth in economies. The bank’s global presence in Europe, Asia and South America helps to spread risk and offers significant economies of scale. The brand image of HSBC has become firmly established and especially established the value within the banking industry.
Challenges
Citi is the top competitor of HSBC. Citi was founded in 1812, and its headquarters is in New York, New York. Like HSBC, Citi also operates in the Banks field. Citi has 35,175 fewer employees than HSBC.
UBS is seen as one of HSBC’s top competitors. UBS was founded in Zurich, Zurich} in 1862. Like HSBC, UBS also works within the Banks field. Compared to HSBC, UBS generates $50.1B less revenue.
Bank of America is HSBC’s #3 rival. Bank of America’s headquarters is in Charlotte, North Carolina, and was founded in 1998. Like HSBC, Bank of America also operates in the Banks sector. Bank of America generates 162% of HSBC’s revenue. Its other competitors are- Standard Chartered, Goldman Sachs, American Express, etc.
Failures
War and economic disruption inevitably meant that the first half of the 20th century was a difficult time for HSBC.
After the First World War, the bank expanded in Asian markets, where trade in rubber and tin was booming. The expansion of branches in Bangkok, Manila, and Shanghai underlined its confidence in business in the region. But along with its customers, HSBC suffered during the Great Depression. In the 1930s, its inner reserves were drawn down and the bank focused most of its resources on survival rather than expansion. Staff bonuses were cut or canceled and shareholder dividends were reduced.
The Second World War was an even tougher period for the bank. It survived thanks to its significant reserves and careful management, which allowed the business to retain a strong foundation for growth when peace returned.
Despite its focus on Asia, HSBC was still affected by the First World War. Forty of the 169 HSBC employees from the bank’s London office who joined the British forces during the war were killed or listed as missing in action. Conscription also meant there was a shortage of recruits and staff were placed on extended postings.
Following advances by the Japanese army in December 1941, including in Hong Kong, HSBC was forced to shut most of its network in Asia. Its employees often showed tremendous courage, sticking to their posts until the last minute to help customers access to cash or send money abroad. Much British staff were captured and held as prisoners of war or were interned in civilian camps. The bank moved its head office to London on 16 December 1941.
Achievements
- 2020 TMI Awards for Innovation & Excellence in Treasury Management in December 2020
- Euromoney Cash Management Survey 2020 in November 2020
- Asia Insurance Industry Awards 2020 in November 2020
- PWM/The Banker Global Private Banking Awards 2020
- Insurance Asset Management Awards in 2019
- GlobalCapital Sustainable and Responsible Capital Markets Awards in 2019
CEOs
- Noel Quinn