Case study on HSBC Bank

Case study on HSBC Bank

1. Uttara University

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3. Our Group member name: Name ID Md.Nurul Amin Nayem M21431111141. Mahmudul Hasan M21431111143. ommey samia saimum F21431111127. Farjana Boby F21431111109. Mustafiz Rahman . F214311111116.

4. Our Presentation Topic Name Is: Case study on “HSBC Bank”

5. INTRODUCTION TO HSBC HSBC is one of the world’s largest banking and financial services organizations. HSBC serve more than 45 million customers through four global businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. HSBC's international network comprises around 4400 offices covers 71 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America.

6. History of HSBC The Hongkong and Shanghai Bank was established in British Hong Kong in 1865 and was incorporated as The Hongkong and Shanghai Banking Corporation in 1866, and has been based in Hong Kong (although now as a subsidiary) ever since. It was renamed The Hongkong and Shanghai Banking Corporation Limited in 1989. It is the founding member of the HSBC Group of Banks and Companies, since 1990, is the namesake and one of the leading subsidiaries of the London-based HSBC Holdings PLC. The company's business ranges from the traditional High Street roles of retail banking, commercial banking, corporate banking to investment banking, private banking and global banking. It is the largest bank in Hong Kong, and operates branches and offices throughout the Asia Pacific region, and in other countries around the world.

7. HSBC in Bangladesh HSBC started operations in 1996. HSBC Bangladesh is rated ‘AAA’ in the Long-term and ST-1 rating in the Short-term, which are the highest level of ratings for any bank or financial institution in Bangladesh. HSBC Bangladesh offers a comprehensive range of financial services such as commercial banking, consumer banking, payments and cash management, trade services, treasury, and custody and clearing.  People using this service can freely remit money from Bangladesh to any part of the world and can access their money from any HSBC booth around the world.

8. Operations HSBC has a significant presence in each of the world's major financial markets, with the Americas, Asia Pacific and Europe each representing around one third of its business. HSBC is the largest bank in Hong Kong and prints most of Hong Kong's local currency in its own name. As of 2014, according to Relsbank , HSBC was the fourth-largest bank in the world by assets (with $2,670.00  billion), the second largest in terms of revenues (with $146.50 billion) and the largest in terms of market value (with $180.81 billion). It was also the most profitable bank in the world with $19.13 billion in net income in 2007 (compared to Citigroup's $3.62 billion and Bank of America's $14.98 billion in the same period).In June 2006, The Economist stated that since the end of 2005 HSBC has been rated the largest banking group in the world by Tier 1 capital. In June 2014 The Banker ranked HSBC first in Western Europe and 5th in the world for Tier 1 capital. In February 2008, HSBC was named the world's most valuable banking brand by The Banker magazine.

9. Principal business groups and divisions HSBC organizes its customer facing activities within four business groups: Commercial Banking. Global Banking and Markets (investment banking). Retail Banking and Wealth Management (RBWM. Global Private Banking

10. Commercial Banking HSBC provides financial services to small, medium-sized and middle-market enterprises. The group has more than 3 million of such customers, including sole proprietors, partnerships, clubs and associations, incorporated businesses and publicly quoted companies.

11. Global Banking & Markets Global Banking and Markets is the investment banking arm of HSBC. It provides investment banking and financing solutions for corporate and institutional clients, including corporate banking, investment banking, capital markets, trade services, payments and cash management, and leveraged acquisition finance. It provides services in equities, credit and rates, foreign exchange, money markets and securities services, in addition to asset management services.Global Banking and Markets has offices in more than 60 countries and territories worldwide, and describes itself as "emerging markets-led and financing-focused". It is currently being led by former fixed-income trader  Samir assaf who was promoted from global head of markets on 10 December 2010.

12. Retail banking and wealth management HSBC provides more than 54 million customers worldwide with a full range of personal financial services, including current and savings accounts, mortgage loans, car financing, insurance, credit cards, loans, pensions and investments . Retail Banking and Wealth Management (also known as RBWM) was previously referred to as Personal Financial Services (PFS). This rename was announced during HSBC's 2011 Investor Day.

13. Global Private Banking HSBC Private Bank is the marketing name for the private banking business conducted by the principal private banking subsidiaries of the HSBC Group worldwide.HSBC Private Bank, together with the private banking activities of HSBC Trinkaus , known collectively as Group Private Banking, provides services to high-net-worth individuals and their families through 93 locations in some 42 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. According to the Scorpio Partnership Global Private Banking Benchmark 2014, the bank had 382 USD Bn of assets under management ( AuM ) a decrease of 4% on the 2013 figure.In September 2008, HSBC announced that it would combine its two Swiss private banks under one brand name in 2009, with HSBC Guyerzeller and HSBC Private Bank to be merged into one legal entity, under the newly appointed CEO of HSBC Private Bank, Alexandre Zeller.

14. Global product lines HSBC Direct HSBCnet HSBC Advance HSBC Premier

15. HSBC Direct HSBC Direct is a telephone/online direct banking operation which attracts customers through mortgages, accounts and savings. It was first launched in the USAin November 2005 and is based on HSBC's 'First Direct' subsidiary in Britain which was launched in the 1980s. HSBCnet HSBCnet  is a global service that caters to local business needs by offering specialized functionality for different regions worldwide. HSBC Advance HSBC Advance is the group's product aimed at working professionals. The exact benefits and qualifications vary depending on country, but typically require a transfer of Salary of USD 1,500 or more every month or Maintain USD 25,000 of deposits in a Savings/Current Account or investments. HSBC Premier HSBC Premier is the group's premium financial services product. It has its own Elite Card entitled HSBC Premier World Card. 

16. key success factors for HSBC key factor of success is the ability of HSBC to reach a large section of customers by different innovative promotional campaigns. Moreover discounts, rebates, relaxing of interest rates on loan during crisis etc. has helped to gain popularity as well as confidence among its customers. HSBC also keeps a strong focus on the services that it offers to the customers. It offers personal banking services, consumer finance, commercial banking, corporate investment banking and market, private banking etc among 100 million customers spread all over the world in a very professional and efficient way .This has helped to boost up the confidence level of the customers to a great extent. Also 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.

17. SWOT ANALYSIS OF HSBC Invest Direct Strengths The size and diversity of HSBC is a key strength. In the first half of the year, the Far East contributed nearly two-thirds of group profit. This balance may shift in coming years as European and North American markets recover. Weaknesses HSBC does not have the same clout in investment banking as Barclays or Morgan Stanley. While this may have worked to the group’s benefit during the financial crisis, now that markets are picking up, HSBC could lose some ground to its rivals. Opportunities HSBC never had to ask for a taxpayer bailout during the financial crisis and has been relatively untouched by the LIBOR and PPI miselling schandals . The reputational damage suffered by Barclays, Lloyds and RBS gives HSBC an opportunity to win significant business in the UK market. Threats The UK government’s banking levy is charged on assets owned by the banks. However, with much of its assets overseas, HSBC’s charge seems disproportionate. If UK regulators continue their assault on the sector, HSBC may be forced to relocate.

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