Research Analyst

HSBC Holdings plc also called HSBC Group operates in nearly 79 countries. It offers comprehensive financial services encompassing commercial, merchant banks, capital markets, consumer finance, securities, investments, and insurance. The HSBC Group is global in nature, despite the fact that the group is still being centered around the bank from which it evolved The Hongkong and Shanghai Banking Corporation Limited.

The history of HSBC began with the founding of the Hongkong and Shanghai Banking Company, Ltd. in 1865. In the early 1860s, Hong Kong's financial needs were served by European trading houses called "hongs." This system proved inadequate as the colony's bustling trade in tea, silk, and opium flourished. In order to meet the growing needs of the economy, The Hongkong and Shanghai Banking Company Limited was opened on March 3, 1865, with a second branch inaugurated in Shanghai on 3rd April. HSBC’s roots in India record back to 1853 when the Mercantile Bank of India was instituted in Mumbai.

Organization Structure 

• Principal business groups and divisions: HSBC operating model consists of four global businesses and a Corporate Centre, supported by HSBC Operations, Services and Technology. They perform 11 global functions, including risk, finance, compliance, legal, marketing, and human resources.
• Retail Banking and Wealth Management (RBWM): HSBC helpS 38 million customers across the world. It helps them to manage their finances, buy homes, and guide them on saving and investing for the future. For customers with simpler banking needs, they offer a full range of products and services reflecting local requirements.
• Commercial Banking (CMB): They support approximately 1.5 million business customers in 53 countries and territories, ranging from small enterprises focused primarily on their domestic markets, through to large companies operating globally. Their major services are:
  • Working capital
  • Term loans
  • Payment services 
  • International trade facilitation
  • Expertise in mergers and acquisitions
  • access to financial markets.
• Global Banking and Markets (GB&M): They serve approximately 4,100 clients in more than 50 countries and territories. They support the major government, corporate and institutional clients worldwide and product specialists continue to deliver a comprehensive range of transaction banking, financing, advisory, capital markets, and risk management services.
• Global Private Banking (GPB): They serve high net worth and ultra high net worth individuals and families, including those with international banking needs. Services provided include Investment Management, which includes advisory and brokerage services, and Private Wealth Solutions, which comprises trusts and estate planning, to protect and preserve wealth for future generations.

Products:

• HSBC Credit Card
• HSBC Fixed deposit
• HSBC Home loan
• HSBC Personal loan
• HSBC Bank Savings account
• HSBC Bank loan against property

Principal Subsidiaries:

• The HongKong and Shanghai Banking Corporation
• HSBC Bank USA
• HSBC Bank Canada
• Hang Seng Bank
• HSBC Bank India
• HSBC Private bank
• HSBC Trinkaus
• HSBC Expat
• HSBC Bank Middle East
• HSBC Bank Malaysia
• HSBC Bank China
• HSBC Mexico
• HSBC Bank Argentina
• HSBC Finance
• HSBC Insurance
• HSBC Bank Bermuda
• HSBC Bank Taiwan
• HSBC Bank Egypt
• HSBC Sri Lanka
• HSBC Bank Malta
• HSBC Bank Malta

Key People

• Mark E Tucker- Group Chairman: Mr. Tucker assumed his role as a non-executive Group Chairman from 1 October 2017. He also chairs the Nomination & Corporate Governance Committee and has over 30 years’ experience in the financial services industry in Asia and UK. He was most recently Group Chief Executive and President of AIA Group Limited (AIA). Under his leadership, AIA became the largest independent publicly listed pan-Asian life insurance group, covering 18 markets. Prior to AIA, Mr. Tucker operated at several senior management positions with Prudential plc.
• John Flint- Group Chief Executive: Mr. Flint was appointed as Executive Director and Group Chief Executive of HSBC Holdings plc on 21 February 2018. He also holds the post of Chairman of The Hongkong and Shanghai Banking Corporation Limited. He joined HSBC as an International Officer in October 1989 and spent the first 14 years of his career with HSBC in Asia helping to establish and expand the HSBC Global Markets business in the region.
• Jonathan Symonds- Deputy Group Chairman: Mr. Symonds is the Deputy Group Chairman of HSBC Holdings plc since August 2018. He has extensive international financial and governance experience. 

Mergers & Acquisitions

• In July 2002 HSBC purchased a portion of Andersen's tax practice.
• In August 2002, HSBC acquired Mexico's third largest retail bank Grupo Financiero Bital, SA de CV, for $1.1 billion.
• In November 2002, HSBC expanded further in the United States by acquiring Household Finance Corporation for $1.1 billion.
• In September 2003, HSBC bought for $7.8 million, the Poland-based Polski Kredyt Bank SA.

Other Acquisitions: 

Banistmo, National Westminster Bank of Canada, Grace National Bank, Grupo Banistmo, Banque de Baecque Beau, Midland Bank, Barclays Bank Canada, BCA Marketplace, Bank of British Columbia, Beneficial Corporation, British Arab Commercial Bank, Continental Bank of Canada, Mercantile Bank of India, London, and China, and Samuel Montagu & Corporation, Crédit Commercial de France, Republic New York, Demirbank, Antony Gibbs & Sons, HSBC Guyerzeller Bank, Lloyds Bank Canada, and Marine Midland Bank.

News and Facts

• In November 2017, HSBC launched the world's 1st corporate sustainable bond based on the United Nations Sustainable Development Goals (UNSDGs). This reflects the Group’s commitment to financing projects that benefit communities and the environment.
• HSBC also published a new framework for the SDG bond aligned to the UNSDGs and the proceeds will be used to support projects contributing towards specific goals, like improving access to education, essential healthcare, fresh water, sanitation, increasing the share of renewables in the global energy mix, building sustainable cities and transport systems, helping communities adapt to the effects of climate change.