A presentation of HSBC


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A presentation of HSBC

  1. 1. Who is this gentleman? <ul><li>Roger Federer </li></ul>
  2. 2. Michael Schumacher
  3. 3. <ul><li>THEN THE CHAMPION WILL BE… </li></ul>If Banking were to be a sport
  4. 5. WHAT IS HSBC? <ul><li>HSBC Holdings is a public limited company incorporated in England and Wales in 1990, and headquartered in London since 1993 </li></ul><ul><li>The group was founded from The Hong Kong and Shanghai Banking Corporation based in Hong Kong. </li></ul><ul><li>As of 2009, it is both the world's largest banking group and the world's 6th largest company according to a composite measure by Forbes magazine. </li></ul><ul><li>No single geographical area (China) dominates the group's earnings. </li></ul><ul><li>Hong Kong still continues to be a significant source of our income. </li></ul>
  5. 6. SOME FACTS <ul><li>Revenue: $142.05 billion </li></ul><ul><li>Net Income: $3,541 million </li></ul><ul><li>312,000 employees across the globe </li></ul><ul><li>9,500 offices in 85 countries and territories </li></ul><ul><li>Our current share price is </li></ul><ul><li>87.65HKD per share </li></ul>
  6. 7. <ul><li>What is the purpose of today? </li></ul>
  7. 8. HSBC Global Strategy
  8. 9. Our focus for 2009 <ul><li>HSBC Bank </li></ul><ul><li>Continue to provide vital banking and financial services to our personal and commercial customers. </li></ul><ul><li>Expansion of International branch network. </li></ul><ul><li>Additional growth efforts in HSBC Direct, HSBC Premiere and commercial banking </li></ul><ul><li>Ensure effective implementation of a realignment of personal and commercial business lines. </li></ul><ul><li>Leveraging our strength in Commercial Banking and maximizing opportunities in PFS, Wealth Management, Private Banking and Global Banking and Markets. </li></ul><ul><li>Leveraging the global strength of HSBC locally to offer market leading products and increase efficiency . </li></ul><ul><li>Expanding HSBC Finance </li></ul>
  9. 10. THE FALL
  10. 11. After the fall <ul><li>The world suffered after the sub prime crisis, leading to a global recession. </li></ul><ul><li>We too, along with every major bank in the world, were responsible. </li></ul><ul><li>Although we were at the centre of the subprime storm, the economic crisis of our bank is much better than other global banks. </li></ul><ul><li>In November 2002 HSBC expanded in the United States, spending US$15.5bn to acquire Household Finance Corporation (HFC), a US credit card issuer and subprime lender. </li></ul><ul><li>The business indeed turned sour, costing HSBC some US$62bn. </li></ul>
  11. 12. WE ARE BACK BABY!!!
  12. 13. Us Versus Sub Prime menace
  13. 14. <ul><li>“ A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” - Winston Churchill </li></ul>
  14. 15. Steps we took after the fall <ul><li>We shut down the branch network of HSBC Finance in the U.S. </li></ul><ul><li>leaving only the credit card business to continue operating, which will generate </li></ul><ul><li>profits in the future </li></ul><ul><li>We transferred £750 million to London within hours </li></ul><ul><li>We had just lent £4 billion to other UK banks. </li></ul><ul><li>The global recession has created a wide gap as many banks have shut down. </li></ul><ul><li>We made US$9.3bn of profit in 2008 and announced a £12.5bn rights issue to enable us to buy other banks that were struggling to survive. </li></ul><ul><li>When the eagles are silent, the parrots begin to jabber. </li></ul>
  15. 16. HSBC finance <ul><li>In November 2002 HSBC expanded in the United States, spending £9bn (US$15.5bn) to acquire Household Finance Corporation (HFC), a US credit card issuer and subprime lender. </li></ul><ul><li>The business indeed turned sour, costing HSBC some US$62bn </li></ul><ul><li>We have closed HSBC finance leaving only the credit card business to continue operating </li></ul><ul><li>It will generate US $5 billion in this year alone. </li></ul><ul><li>In five years time, US $66 billion </li></ul>
  16. 17. SO WHAT? <ul><li>“ You guys screwed up, what’s in it for me?” </li></ul><ul><li>US $4 billion dollars profits from credit card </li></ul><ul><li>business </li></ul><ul><li>The profits will be for the investors </li></ul><ul><li>No general reserve. </li></ul>
  17. 18. Michael Geoghegan <ul><li>HSBC Group's Chief Executive </li></ul>
  19. 20. Our Focus graph: s 10 • Ancillary Functions • Calendering Efficiency Zone Ability to Drive Dissatisfaction Ability to Drive Satisfaction Zone of Competitive Opportunity Zone of Competitive Intensity Zone of Competitive Necessity Strategic Focus • Quicken Support • Internal Account Aggregation • Ease of use • Competence • Responsiveness • Aesthetics • Courtesy • External Account Aggregation • Personalisation • ‘ Other’Channel Access • Real Time • Availability • Security • Reliability • Accuracy Source - Compass
  20. 21. Net Income, Operating income and Revenue (IN BILLIONS)
  21. 22. TOTAL ASSET (In Trillions)
  22. 23. <ul><li>Offshoring processing work to lower cost economies. </li></ul>
  23. 24. We opened up CHINA!
  24. 25. We are entering new markets, example Vietnam, Chile and Croatia.
  25. 26. We are also helping towards opening up of the Russian market to its full potential.
  26. 27. We were and still are the dominant foreign bank in non EU countries
  27. 28. We are already there!!!
  28. 29. We are always excited to work in different countries .
  29. 30. <ul><li>And also new sectors </li></ul><ul><li>We are the only international bank to have entered the rural industry. </li></ul><ul><li>HSBC provides financial services to small, medium-sized and middle-market enterprises. </li></ul><ul><li>HSBC is not just a competitor but a true champion in the banking industry. </li></ul>
  30. 31. <ul><li>THANK YOU </li></ul>