Global Banking and Financial Services Organization - Essay Example

?Company Profile of HSBC Company Overview HSBC is a global banking and financial services organization located in more than 80 countries worldwide. HSBC was reported to be named after its founding member, the Hong Kong and Shanghai Banking Corporation Limited, whose roots could be traced as far back as 1865, or more than 147 years to date. It products and services have grown extensively from its core everyday banking accounts that include current accounts and credit cards; to loans and mortgages; savings and investment accounts; and even property and family insurance. Its holdings company belongs to the Global 500 companies generating a ranking of 46 for 2011 (CNN Money 2012). Historical Background HSBC was reported to have been founded by “Thomas Sutherland, a Scot who was then working for the Peninsular and Oriental Steam Navigation Company” (HSBC Global Site, 2012, par. 2). Its establishment was disclosed to have been fuelled by the perceived need to finance increasingly expanding trade between Europe, China and India. As such, the first bank was noted to have been opened in 1865 in Hong Kong and in Shanghai, China one month after. In the UK, its official website disclosed that the roots of HSBC bank was traced from the establishment of Birmingham and Midland Bank which was founded by Charles Geach in Union Street in the city of Birmingham on the 22nd of August, 1826. Only in 1992 was it officially identified as part of the HSBC Group by joining as member. Historical facts revealed that in September of 1999, the Midland Bank was already renamed HSBC Bank to communicate to the public its corporate leadership as a global financial bank. Company Structure and Organization HSBC UK is governed and headed by its CEO, Brian Robertson. Three managing officers report directly to him under Personal Financial Services, Business and Commercial Segment, and Commercial Banking (The Official Board.com 2012 ). Main Products and Services The categories of HSBC’s products and services are initially classified into two broad categories: personal and business. Under personal products and services, there are four distinct offers: everyday banking; borrowing, savings and investing, and insurance. Under business products and services, HSBC provides professional advices regarding starting a business; and banking depending on stipulated capitalization ranging from turnover up to ?2m (business banking); turnover of ?2m to ?25m (commercial banking) and turnover in excess of ?25m (corporate and structured banking). Likewise, HSBC offers international banking services that range from maintaining international business accounts, insurance and protection, internet banking, importing and exporting and even global cash management, among others (HSBC UK 2012) Areas of Operations HSBC UK operates more than 1,500 branches across England, Wales, Scotland and Northern Ireland. As revealed, HSBC UK scope of operations “extends to the full range of our commercial, corporate, premier and private banking services - as well as to subsidiary brands like First Direct, M&S Money and HFC Bank. The UK is also home to our global headquarters, 8 Canada Square. Located in the heart of Canary Wharf, 8CS is one of the country's tallest buildings, spanning 42 floors and employing more than 8,000 people across hundreds of different roles” (HSBC Bank plc, 2012, par. 2). Financial Structure The financial highlights sourced from HSBC’s financial interim reports for the period ended June 30, 2011 are summarized below, with comparative figures from June 30, 2010: Financial Highlights (?M) June 30, 2011 December 30, 2010 Net Interest Income 3,622 3,710 Profit for the Period 1,435 979 Total Assets 857,288 798,494 Total Liabilities 824,760 766,137 Total Equity 32,528 32,357 Source: HSBC Bank plc, Interim Report 2011 ` From the financial highlights, it could be deduced despite the apparent 2.43% decline in net interest income of HSBC from the December 30, 2010 period to June 30, 2011, the profit for the same period exhibited a remarkable increase from ?979 million to ?1,435 million or 32% increase. Likewise, balance sheet accounts manifested growth during the same period with all accounts, total assets, total liabilities and total equity increasing. Despite the reported lackluster in economic recovery for the period under study, HSBC’s financial performance reported modest increases, proving the organization’s resilience and ability to sustain leadership in the banking and financial services industry. Personnel Development With the reported more than 8,000 people assuming diverse roles and responsibilities as HSBC UK, it was reported that the organization invests extensively in people. Accordingly, one of its corporate values is diversity, where the organization emphasized that “diversity is not simply about gender, ethnicity, disability, religion, sexuality or age; it is about respecting individuals and treating everyone, customers and colleagues, with dignity” (HSBC Bank UK, 2012, par. 2). Likewise, there are vast opportunities accorded for both personal and professional growth. As indicated, in every stage of one’s career, training and development are accorded. Its stand on personnel development has been explicitly stated that current human resources would “benefit from a mixture of formal training activities - administered both in person and online - and on-the-job coaching and mentoring. Where appropriate, we'll also help facilitate opportunities for you to complete interesting secondments and placements away from your usual role, and we'll actively support you in working towards achieving relevant professional qualifications” (HSBC UK, 2012, pars. 6 & 7). Future of the Company It is commendable for HSBC to maintain a proactive stance in conducting their business globally. As revealed from its official global site, it was recognized that “in the future, even the smallest business will be multinational” (HSBC Global Site 2012). As acknowledged, other predictions and forecasts of HSBC are summarized below: “In the future… the food chain and the supply chain will merge; South-South trade will be the norm not novelty; Investors will need to be explorers; we will be planting cities; age will be no barrier to ambition; we will all fly organic; it will take many imports to make an export; and there will be no markets left waiting to merge” (HSBC Global Site 2012). These forecasts by HSBC would be used to capture opportunities in the international markets and enable them to address any eminent risks and threats. The organization has recognized that there is an increasing need for trade settlement transactions between China and Latin America. Further, as a global organization, HSBC has designed an Emerging Markets Index, deemed as the “a leading economic indicator for the world's emerging market economies, at a time when the rapid progress of the emerging market regions has never been more closely connected, or important, to the development of the global economy” (HSBC Global Site: In the Future, 2012, par. 1). Conclusion The number of years in existence of HSBC alone proves that the organization has surpassed vast challenges that besieged global organizations through time. Through the company profile that includes its historical background, company structure, products and services, areas of operations, financial structure, personnel development and future prospects, the information presented attested HSBC’s strength and core competence in the offering products and services that make it a leader in the global banking and financial services markets. Reference List CNN Money. 2012. "Global 500: HSBC Holdings." money.cnn.com, [Online]. Available at: http://money.cnn.com/magazines/fortune/global500/2011/snapshots/7597.html (Accessed April 15, 2012). HSBC Bank plc. 2012. "About Us." hsbc.com.uk, [Online]. Available at: http://www.jobs.hsbc.co.uk/107-en/AboutUs.aspx (Accessed April 15, 2012). —. 2011. "Interim Report.", [Online]. Available at: http://www.hsbc.co.uk/1/PA_1_1_S5/content/uk/pdfs/en/hsbc_bank_plc_interim_report1 _2011.pdf (Accessed April 16, 2012). HSBC Bank UK. 2012. "Diversity." hsbc.co.uk, [Online]. Available at: https://www.hsbc.co.uk/1/2/about/diversity-values (Accessed April 15, 2012). HSBC Global Site. 2012. "HSBC's history." hsbc.com, [Online]. Available at: http://www.hsbc.com/1/2/about/history/history (Accessed April 17, 2012). —. 2012. "In the future." [Online]. Available at: http://www.hsbc.com/1/2/about/in-the- future#topic2 (Accessed April 17, 2012). HSBC UK. 2012. "Business." hsbc.co.uk, [Online]. Available at: http://www.business.hsbc.co.uk/1/2/ (Accessed April 15, 2012). —. 2012. "HSBC and you." hsbc.co.uk, [Online]. Available at: http://www.jobs.hsbc.co.uk/108-en/YouAndHSBC.aspx (Accessed April 15, 2012). The Official Board.com. 2012. "HSBC Bank UK." [Online]. Available at: http://www.theofficialboard.com/org-chart/hsbc-uk# (Accessed April 16, 2012). Read More