HSBC Holdings

HSBC Holdings plc is a British multinational banking and financial services company headquartered in London, United Kingdom. It is the world's fourth largest bank by total assets, with total assets of US$2.67 trillion. It was established in its present form in London in 1991 by the Hongkong and Shanghai Banking Corporation Limited to act as a new group holding company.[6][7] The origins of the bank lie mainly in Hong Kong and to a lesser extent in Shanghai, where branches were first opened in 1865.[1] The HSBC name is derived from the initials of the Hongkong and Shanghai Banking Corporation.[8] The company was first formally incorporated in 1866. The company continues to see both the United Kingdom and Hong Kong as its "home markets".[9]
HSBC has around 6,600 offices in 80 countries and territories across Africa, Asia, Oceania, Europe, North America and South America, and around 60 million customers.[10] As of 2012, it was the world's second largest bank in terms of assets and sixth-largest public company, according to a composite measure by Forbes magazine.[11]
HSBC is organised within four business groups: Commercial Banking; Global Banking and Markets (investment banking); Retail Banking and Wealth Management; and Global Private Banking.[12]
HSBC has a dual[13] primary listing on the Hong Kong Stock Exchange and London Stock Exchange and is a constituent of the Hang Seng Index and the FTSE 100 Index. As of 6 July 2012 it had a market capitalisation of £102.7 billion, the second-largest company listed on the London Stock Exchange, after Royal Dutch Shell.[14] It has secondary listings on the New York Stock Exchange, Euronext Paris and the Bermuda Stock Exchange.
In February 2015 the International Consortium of Investigative Journalists released information about the business conduct of HSBC under the title Swiss Leaks. The ICIJ alleges that the bank profited from doing business with tax evaders and other clients.[15] BBC reported that HSBC had put pressure on media not to report about the controversy, with British Newspaper The Guardian claiming HSBC advertising had been put "on pause" after The Guardian's coverage of the matter.[16] Peter Oborne, chief political commentator at Daily Telegraph resigned from the paper; in an open letter he claimed the Daily Telegraph suppressed negative stories and dropped investigations into HSBC because of the bank's advertising.

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 2 April 2008, according to Forbes magazine, HSBC was the fourth-largest bank in the world by assets (with $2,348.98 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).[77] 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.[78] In June 2014 The Banker ranked HSBC first in Western Europe and 5th in the world for Tier 1 capital.[79] In February 2008, HSBC was named the world's most valuable banking brand by The Banker magazine.[80][81]
HSBC is known for a conservative and risk-averse approach to business – a company tradition going back to the 19th century.[82] This reputation has been brought into question in the 21st century.
In its technical management, however, HSBC has recently suffered a series of headline-making incidents in which some customer data were allegedly leaked or simply went missing. Although the consequences turned out to be small, the embarrassing effect on the group's image did not go unnoticed.[83]
HSBC is currently audited by one of the Big Four auditors, KPMG. The HSBC and KPMG headquarters are adjacent to one another, with KPMG occupying 15 Canada Square.[84] HSBC Main Building, Hong Kong is also adjacent to KPMG office located in Prince's Building. A decision on 2 August 2013 made public that PricewaterhouseCoopers will take on the HSBC audit in 2015.[85]
In the six months to 30 June 2014, the bank reported a £7.33 billion ($12.34 billion) profit before tax, down from $14.07 billion for the comparable period in 2013.