Question

Give a short introduction to HSBC (300 words roughly)

Answer 1

HSBC was setup in 1865 by Thomas Sutherland, a Scotsman in Hong Kong then a British colony. It is one of the largest banking and financial services organization in the world. It currently operates in 65 countries and territories. It serves over 40 million customers worldwide and employs more than 238,000 full time employees. It is seventh largest bank in the world and the largest bank in Europe as of 2018 with a total asset base of $2.558 trillion as of December, 2018. It has many different subsidiaries based on the countries it is operating in.

HSBC has four global businesses, namely Commercial Banking, Global Banking and Markets, Global Private Banking and Retail banking and wealth management.

The commercial banking arm provides financial services to small, medium-sized and middle-market enterprises. With more than two million customers, the commercial banking arm serves a wide array of customers including sole proprietors, partnerships, associations, businesses and publicly quoted companies.

The global banking and markets is the investment banking arm of HSBC that provides investment banking and financial solutions to its clients who are corporate and institutional clients. The arm provides a wide array of services including corporate banking, investment banking, capital markets, trade services, payments, cash management, and leveraged acquisition finance. The arm deals in equities, credits and loans, foreign exchange, money market and securities while also providing asset management services. It operates in more than 60 countries.

The private banking business is conducted under the brand name of HSBC private banking. It provides financial services to high net worth individuals in about 42 countries and territories.

The retail banking arm has over 54 million customers. It serves these customers with personal financial services such as current and savings accounts, mortgage loans, car loans, etc.