Worldwide

Who we are

We are the world's local bank.

Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. HSBC’s international network comprises around 8,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.

With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 220,000 shareholders in 119 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts.

Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.

Strategy

HSBC’s strategic direction reflects its position as ‘The world’s local bank’, combining the largest global developing markets banking business and a uniquely cosmopolitan customer base with an extensive international network and substantial financial strength. The combination of local knowledge and international breadth is supported by a substantial financial capability founded on balance sheet strength, largely attributable to the scale and stability of the Group’s retail deposit bases. HSBC is continuing to direct incremental investment primarily to the faster growing markets and, in the more developed markets, is focusing on businesses and customer segments which have international connectivity. A policy of maintaining HSBC’s capital strength and strong liquidity position remains complementary to these reshaping activities.

Assets

US$2,422 billion at 30 June 2009.

Profit before tax

US$5,019 million for the first half of 2009.

Capital strength

Tier 1 capital ratio: 10.1%
Total capital ratio: 13.4%
at 30 June 2009

International reach

Around 8,500 offices in 86 countries and territories.

Staff

296,000 employees worldwide.

Customers

Over 100 million worldwide, with a total of 45 million customers registered for internet banking.

Technology

HSBC is a major user of advanced information technology, with an annual spending of US$5.9 billion. Its e-business channels include the internet, PC banking and telephone banking. HSBC maintains its own private telecommunications network – one of the world's largest - to deliver IT services to customers and to staff around the world. HSBC web sites attracted 726 million visits during the first half of 2008.

Personal Financial Services (including Consumer Finance)

HSBC provides its personal customers worldwide with a full range of personal financial services, including current and savings accounts, mortgages, insurance, credit cards, loans, pensions and investments. Consumer finance, part of Personal Financial Services, facilitates point-of-sale credit to consumers, and lends money and provides related services to meet the financial needs of everyday people.

The reported loss before tax of US$1.2 billion for the first half of 2009 compared with a profit of US$2.3 billion in the first half of 2008 as loan impairment charges rose in all regions, particularly in North America, following further deterioration in global economic conditions. The HSBC Premier (‘Premier’) product offering grew to 2.9 million customers in the first half of2009 and remained at the core of HSBC’s wealth management proposition. The Premier service was launched in Russia and Colombia during the period, taking the total number of territories to 43. 541,000 net new customers joined Premier, of whom more than 68 per cent were new to the Group.

Commercial Banking

HSBC is a leading provider of financial services to small, medium-sized and middle-market enterprises. Commercial Banking demonstrated considerable resilience in difficult economic markets, generating pre-tax profits of US$2.4 billion for the first half of 2009, including US$1.4 billion from emerging markets. The decline of 39 per cent on the first half of 2008 resulted from reduced deposit spreads in the low interest rate environment and from increased loan impairment charges.

The success of the strategy of ‘leading international business’ was demonstrated by strong growth in product revenues, notably 19 per cent and 11 per cent increases in revenue from foreign exchange and from trade and supply chain products, respectively. The number of customers using the HSBCnet platform increased, particularly in India and Canada. The volume of successful referrals from Global Links increased by 7 per cent compared with the first half of 2008.

Global Banking and Markets

This global business provides tailored financial services to corporate, institutional and government clients. Global Banking and Markets delivered a record performance for the first half of 2009 with pre-tax profits ofUS$6.3 billion, an increase of US$3.6 billion or 134 per cent compared with the first half of 2008, on a reported basis, underscored by robust performance in both developed and emerging markets. Higher margins and an increase in market share gave impetus to revenue growth across core businesses, with a record performance in Rates and an increase in revenues in foreign exchange and financing and equity capital markets. Balance Sheet Management also reported record revenues. The reported cost efficiency ratio improved by 29.4 percentage points to 36.0 per cent as revenues grew faster than operating expenses, with active cost management limiting the latter to a relatively modest rise.

Private Banking

HSBC has one of the world’s top private banking businesses, providing financial services to high net worth individuals and their families in 96 locations. Pre-tax profits of US$632 million for the first half of 2009 declined by 23 per cent or 18 per cent on an underlying basis. Underlying net operating income decreased by 13 per cent, driven by a fall in the value of client assets and lower transaction volumes as a result of client risk aversion and volatile equity markets. In addition, gains recorded in the first half of 2008 on the sale of HSBC’s residual interest in the Hermitage Fund did not recur. These factors were partly offset by an increase in net interest income following successful positioning in the expectation of falling interest rates and growth in deposits. Loan impairment charges remained at a low level, despite the financial crisis.

Primary Press Contacts

London: 44 020 7991 0633 / 44 020 7992 1555
Hong Kong: 852 2822 4929
Chicago: 1 224 544 3299
Paris: +33 1 40 70 7729