HSBC Holdings plc is a British
multinational universal bank
A universal bank participates in many kinds of banking activities and is both a commercial bank and an investment bank as well as providing other financial services such as insurance.financial services
Financial services are the Service (economics), economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, acco ...
holding company
A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
. It is the largest bank in Europe by total assets ahead of
BNP Paribas
BNP Paribas is a French international banking group, founded in 2000 from the merger between Banque Nationale de Paris (BNP, "National Bank of Paris") and Paribas, formerly known as the Banque de Paris et des Pays-Bas. The full name of the grou ...
, with US$2.953 trillion as of December 2021. In 2021, HSBC had $10.8 trillion in assets under
custody (AUC) and $4.9 trillion in assets under administration (AUA), respectively.
HSBC traces its origin to a
hong Hong may refer to:
Places
*Høng, a town in Denmark
*Hong Kong, a city and a special administrative region in China
*Hong, Nigeria
*Hong River in China and Vietnam
*Lake Hong in China
Surnames
*Hong (Chinese name)
*Hong (Korean name)
Organiz ...
in
British Hong Kong
Hong Kong was a colony and later a dependent territory of the British Empire from 1841 to 1997, apart from a period of occupation under the Japanese Empire from 1941 to 1945 during the Pacific War. The colonial period began with the Briti ...
, and its present form was established in
London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
by
the Hongkong and Shanghai Banking Corporation
The Hongkong and Shanghai Banking Corporation Limited (), commonly known as HSBC (), was the parent entity of the multinational HSBC banking group until 1991, and is now its Hong Kong-based Asia-Pacific subsidiary. The largest bank in Hong K ...
to act as a new group
holding company
A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
in 1991;
its name derives from that company's initials.
The Hongkong and Shanghai Banking Corporation opened branches in
Shanghai
Shanghai (; , , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China (PRC). The city is located on the southern estuary of the Yangtze River, with the Huangpu River flow ...
in 1865
and was first formally incorporated in 1866.
HSBC has offices in 64 countries and territories across Africa, Asia, Oceania, Europe, North America, and South America, serving around 40 million customers.
As of 2022, it was ranked no. 38 in the world in the Forbes rankings of large companies ranked by sales, profits, assets, and market value.
HSBC is organised within three business groups: Commercial Banking, Global Banking and Markets, and Wealth and Personal Banking.
In 2020, the bank announced that it would consolidate its Retail Banking & Wealth Management arm with Global Private Banking, to form Wealth & Personal Banking.
HSBC has a dual primary listing on the
Hong Kong Stock Exchange
The Stock Exchange of Hong Kong (SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repor ...
and
London Stock Exchange
London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...
and is a constituent of the
Hang Seng Index
The Hang Seng Index (HSI) is a freefloat-adjusted market- capitalization-weighted stock-market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator ...
and the
FTSE 100 Index
The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" , is a share index of the 100 companies listed on the London Stock Exchange with (in principle) the highest market ...
. It has secondary listings on the
New York Stock Exchange
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...
, and the
Bermuda Stock Exchange.
HSBC has had a number of
controversies
Controversy is a state of prolonged public dispute or debate, usually concerning a matter of conflicting opinion or point of view. The word was coined from the Latin ''controversia'', as a composite of ''controversus'' – "turned in an opposite d ...
and the bank has been repeatedly fined for
money laundering
Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictions ...
(sometimes in relation with criminal organizations such as the
Sinaloa cartel
The Sinaloa Cartel ( es, link=no, Cártel de Sinaloa), also known as the CDS, the Guzmán-Loera Organization, the Pacific Cartel, the Federation and the Blood Alliance, is a large, international organized crime syndicate that specializes in il ...
)
[Gangster Bankers: Too Big to Jail, How HSBC hooked up with drug traffickers and terrorists. And got away with it](_blank)
, ''Rolling Stone'' magazine, Matt Taibbi, 14 February 2013. or setting up large scale
tax avoidance
Tax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law. A tax shelter is one type of tax avoidance, and tax havens are jurisdict ...
schemes.
History
Origins to 2000
The Hongkong and Shanghai Bank was founded by the Scottish banker,
Thomas Sutherland, in the then-British colony of
British Hong Kong
Hong Kong was a colony and later a dependent territory of the British Empire from 1841 to 1997, apart from a period of occupation under the Japanese Empire from 1941 to 1945 during the Pacific War. The colonial period began with the Briti ...
on 3 March 1865, and in Shanghai a month later, benefiting from the start of trading into China, including
opium
Opium (or poppy tears, scientific name: ''Lachryma papaveris'') is dried latex obtained from the seed capsules of the opium poppy ''Papaver somniferum''. Approximately 12 percent of opium is made up of the analgesic alkaloid morphine, which i ...
trading. It was formally incorporated as
The Hongkong and Shanghai Banking Corporation
The Hongkong and Shanghai Banking Corporation Limited (), commonly known as HSBC (), was the parent entity of the multinational HSBC banking group until 1991, and is now its Hong Kong-based Asia-Pacific subsidiary. The largest bank in Hong K ...
by an Ordinance of the
Legislative Council of Hong Kong on 14 August 1866.
In 1980, HSBC acquired a 51% shareholding in US-based
Marine Midland Bank
Marine Midland Bank was an American bank formerly headquartered in Buffalo, New York, with several hundred branches throughout the state of New York. In 1998, branches extended to Pennsylvania. It was acquired by HSBC in 1980, and changed its na ...
, which it extended to full ownership in 1987. On 6 October 1989, it was renamed by the legislative council, by an amendment to its governing ordinance originally made in 1929, to The Hongkong and Shanghai Banking Corporation Limited, and became registered as a regulated bank with the then
Banking Commissioner of the Government of Hong Kong.
During the
Konfrontasi period in the 1960s, a group of Indonesian forces
bombed the MacDonald House building in Singapore (at the time used by HSBC) just a few months after Singapore was granted its independence from Malaysia. A number of people were killed and the two military officers responsible for the bombing were tried and executed.
HSBC Holdings plc, originally incorporated in England and Wales, was a non-trading, dormant
shelf company
A shelf corporation, shelf company, or aged corporation is a company or corporation that has had no activity. It was created and left with no activity – metaphorically put on the "shelf" to "age". The company can then be sold to a person or g ...
when it completed its transformation on 25 March 1991
into the parent holding company to the Hongkong and Shanghai Banking Corporation Limited now as a subsidiary, in preparation for its purchase of the UK-based
Midland Bank
Midland Bank Plc was one of the Big Four banking groups in the United Kingdom for most of the 20th century. It is now part of HSBC. The bank was founded as the Birmingham and Midland Bank in Union Street, Birmingham, England in August 1836. It ...
and the impending
transfer of sovereignty of Hong Kong
Transfer may refer to:
Arts and media
* ''Transfer'' (2010 film), a German science-fiction movie directed by Damir Lukacevic and starring Zana Marjanović
* ''Transfer'' (1966 film), a short film
* ''Transfer'' (journal), in management studies
...
to China. HSBC Holdings' acquisition of Midland Bank was completed in 1992 and gave HSBC a substantial market presence in the United Kingdom. As part of the takeover conditions for the acquisition, HSBC Holdings plc was required to relocate its world headquarters from Hong Kong to London in 1993.
Major acquisitions in South America started with the purchase of the Banco Bamerindus of Brazil for $1 billion in March 1997 and the acquisition of Roberts SA de Inversiones of Argentina for $600 million in May 1997. In May 1999, HSBC expanded its presence in the United States with the purchase of Republic National Bank of New York for $10.3 billion.
2000 to 2010
![HK HSBC Main Building 2008](https://upload.wikimedia.org/wikipedia/commons/3/38/HK_HSBC_Main_Building_2008.jpg)
Expansion into
Continental Europe
Continental Europe or mainland Europe is the contiguous continent of Europe, excluding its surrounding islands. It can also be referred to ambiguously as the European continent, – which can conversely mean the whole of Europe – and, by ...
took place in April 2000 with the acquisition of
Crédit Commercial de France
The ''Crédit Commercial de France'' (CCF, "Commercial Credit ompanyof France") is a commercial bank in France, founded in 1894 as the ''Banque Suisse et Française'' and renamed to CCF in 1917. By the end of the 1920s, it had grown to be the six ...
, a large French bank for £6.6 billion. In July 2001 HSBC bought
Demirbank
Demirbank T.A.Ş. is a bank purchased on October 30, 2001, by HSBC from the Turkish Banking Regulator for £248 million. The purchase did not include the non-Turkish subsidiaries of Demirbank, e.g. Demirbank Romania, Demirbank Azerbaijan or Demirb ...
, an
insolvent
In accounting, insolvency is the state of being unable to pay the debts, by a person or company (debtor), at maturity; those in a state of insolvency are said to be ''insolvent''. There are two forms: cash-flow insolvency and balance-sheet inso ...
Turkish bank. In July 2002, Arthur Andersen announced that HSBC USA, Inc., through a new subsidiary, Wealth and Tax Advisory Services USA Inc. (
WTAS
Andersen Tax LLC is a tax firm headquartered in San Francisco, California, United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North ...
), would purchase a portion of Andersen's tax practice. The new HSBC Private Client Services Group would serve the wealth and tax advisory needs of high-net-worth individuals. Then in August 2002 HSBC acquired Grupo Financiero Bital, SA de CV, Mexico's third largest retail bank for $1.1 billion.
In November 2002, HSBC expanded further in the United States. Under the chairmanship of John Bond, it spent £9 billion (US$15.5 billion) to acquire
Household Finance Corporation (HFC), a US credit card issuer and
subprime
In finance, subprime lending (also referred to as near-prime, subpar, non-prime, and second-chance lending) is the provision of loans to people in the United States who may have difficulty maintaining the repayment schedule. Historically, subpri ...
lender. In a 2003 cover story, ''
The Banker
''The Banker'' is an English-language monthly international financial affairs publication owned by ''The Financial Times'' Ltd. and edited in London, United Kingdom. The magazine was first published in January 1926 through founding Editor, Brend ...
'' noted "when banking historians look back, they may conclude that
twas the deal of the first decade of the 21st century". Under the new name of
HSBC Finance
HSBC Finance Corporation is a financial services company and a subsidiary of HSBC Holdings. It is the sixth-largest issuer of MasterCard and Visa credit cards in the United States. HSBC Finance Corporation was formed from the legal entity th ...
, the division was the second largest subprime lender in the United States.
The new headquarters of HSBC Holdings at
8 Canada Square
8 Canada Square (also known as the HSBC Tower) is a skyscraper in Canary Wharf, London. The building serves as the global headquarters of the HSBC Group. The building has 45 storeys and houses approximately 8,000 employees.
Design and construct ...
, London officially opened in April 2003.
In July 2003, HSBC announced that it had a agreed to acquire 82.19% of the Korean fund administrator, Asset Management Technology (AM TeK), for $12.47 million in cash; it was the largest fund administrator in South Korea, with $24 billion of assets under administration. In September 2003 HSBC bought Polski Kredyt Bank SA of Poland for $7.8 million. In June 2004 HSBC expanded into China buying 19.9% of the
Bank of Communications
Bank of Communications Limited (BoComm) (; often abbreviated as ), is the fifth-largest bank in mainland China.
Established in 1908, the Bank of Communications claims a long history in China and is one of the banks to have issued banknotes in mo ...
of Shanghai. In the United Kingdom HSBC acquired Marks & Spencer Retail Financial Services Holdings Ltd for £763 million in December 2004. Acquisitions in 2005 included Metris Inc, a US credit card issuer for $1.6 billion in August and 70.1% of Dar es Salaam Investment Bank of Iraq in October. In April 2006, HSBC bought the 90 branches in Argentina of
Banca Nazionale del Lavoro
Banca Nazionale del Lavoro S.p.A. (BNL) is an Italian bank headquartered in Rome. It is Italy's sixth largest bank and has been a subsidiary of BNP Paribas since 2006.
History
Founded in 1913 as Istituto Nazionale di Credito per la Cooperazione, ...
for $155 million. In December 2007 HSBC acquired the Chinese Bank in Taiwan. In May 2008, HSBC acquired
IL&FS
Infrastructure Leasing & Financial Services Limited (IL&FS) is an Indian state-funded infrastructure development and finance company. It was created by public sector banks and insurance companies.
It operates through more than 250 subsidiaries i ...
Investment, an Indian retail broking firm.
In 2005, Bloomberg Markets magazine accused HSBC of
money laundering
Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictions ...
for drug dealers and state sponsors of terrorism. Then-CEO Stephen Green said that "This was a singular and wholly irresponsible attack on the bank's international compliance procedures", but subsequent investigation indicated that it was accurate and proved that the bank was involved in money laundering for the
Sinaloa Cartel
The Sinaloa Cartel ( es, link=no, Cártel de Sinaloa), also known as the CDS, the Guzmán-Loera Organization, the Pacific Cartel, the Federation and the Blood Alliance, is a large, international organized crime syndicate that specializes in il ...
and throughout
Mexico
Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
.
In July 2006, HSBC announced that it would acquire
Westpac
Westpac Banking Corporation, known simply as Westpac, is an Australian multinational banking and financial services company headquartered at Westpac Place in Sydney, New South Wales.
Established in 1817 as the Bank of New South Wales, it ...
's sub-custody operations in Australia and New Zealand for $112.5 million, making HSBC the leading sub-custody and clearing player in Australia and New Zealand.
In 2007, HSBC wrote down its holdings of subprime-related mortgage securities by $10.5 billion, becoming the first major bank to report its losses due to the unfolding
subprime mortgage crisis
The United States subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the Financial crisis of 2007–2008, 2007–2008 global financial crisis. It was triggered by a large decline ...
.
According to
Bloomberg Bloomberg may refer to:
People
* Daniel J. Bloomberg (1905–1984), audio engineer
* Georgina Bloomberg (born 1983), professional equestrian
* Michael Bloomberg (born 1942), American businessman and founder of Bloomberg L.P.; politician and ma ...
, "HSBC is one of world's strongest banks by some measures". When
HM Treasury
His Majesty's Treasury (HM Treasury), occasionally referred to as the Exchequer, or more informally the Treasury, is a department of His Majesty's Government responsible for developing and executing the government's public finance policy and ec ...
required all UK banks to increase their capital in October 2007, the group transferred £750 million to London within hours, and announced that it had just lent £4 billion to other UK banks.
In March 2009, HSBC announced that it would shut down the branch network of its HSBC Finance arm in the United States, leading to nearly 6,000 job losses and leaving only the credit card business to continue operating.
[Jon Menon]
HSBC Rues Household Deal, Halts U.S. Subprime Lending
Bloomberg L.P.
Bloomberg L.P. is a privately held financial, software, data, and media company headquartered in Midtown Manhattan, New York City. It was co-founded by Michael Bloomberg in 1981, with Thomas Secunda, Duncan MacMillan (Bloomberg), Duncan MacMi ...
2 March 2009. Chairman
Stephen Green stated, "HSBC has a reputation for telling it as it is. With the benefit of hindsight, this is an acquisition we wish we had not undertaken." According to analyst Colin Morton, "the takeover was an absolute disaster".
In March 2009, it announced that it had made US$9.3 billion of profit in 2008 and announced a £12.5 billion (US$17.7 billion; HK$138 billion)
rights issue
A rights issue or rights offer is a dividend of subscription rights to buy additional securities in a company made to the company's existing security holders. When the rights are for equity securities, such as shares, in a public company, it can be ...
to enable it to buy other banks that were struggling to survive. However, uncertainty over the rights issue's implications for institutional investors caused volatility in the Hong Kong stock market: on 9 March 2009 HSBC's share price fell 24.14%, with 12 million shares sold in the last few seconds of trading.
2010 to 2013
On 25 April 2011, HSBC decided to shut down its retail banking business in
Russia
Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...
and reduce its private banking presence to a representative office.
On 11 May 2013, the new chief executive
Stuart Gulliver announced that HSBC would refocus its business strategy and that a large-scale retrenchment of operations, particularly in respect of the retail sector, was planned. HSBC would no longer seek to be 'the world's local bank', as costs associated with this were spiraling and US$3.5 billion needed to be saved by 2013, with the aim of bringing overheads down from 55% of revenues to 48%. In 2010, then-chairman
Stephen Green planned to depart HSBC to accept a government appointment in the Trade Ministry. Group Chief Executive
Michael Geoghegan
Michael may refer to:
People
* Michael (given name), a given name
* Michael (surname), including a list of people with the surname Michael
Given name "Michael"
* Michael (archangel), ''first'' of God's archangels in the Jewish, Christian an ...
was expected to become the next chairman. However, while many current and former senior employees supported the tradition of promoting the chief executive to chairman, many shareholders instead pushed for an external candidate. HSBC's board of directors had reportedly been split over the succession planning and investors were alarmed that the row would damage the company.
On 23 September 2010, Geoghegan announced he would step down as chief executive of HSBC. He was succeeded as chief executive by
Stuart Gulliver, while Green was succeeded as chairman by
Douglas Flint
Sir Douglas Jardine Flint, (born 8 July 1955) is a British banker and former Group Chairman of HSBC Holdings. He served from 2011 to 2017, having previously been Group Finance Director since 1995. He currently serves as chairman of Standard Lif ...
; Flint was serving as HSBC's finance director (chief financial officer). August 2011: Further to CEO Stuart Gulliver's plan to cut $3.5 billion in costs over the next two years, HSBC announced that it will cut 25,000 jobs and exit from 20 countries by 2013 in addition to 5,000 job cuts announced earlier in the year. The consumer banking division of HSBC will focus on the UK,
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
, high-growth markets such as Mexico, Singapore, Turkey, and Brazil, and smaller countries where it has a leading market share. According to Reuters, Chief Executive Stuart Gulliver told the media, "There will be further job cuts. There will be something like 25,000 roles eliminated between now and the end of 2013."
In August 2011 "to align our U.S. business with our global network and meet the local and international needs of domestic and overseas clients", HSBC agreed to sell 195 branches in
New York
New York most commonly refers to:
* New York City, the most populous city in the United States, located in the state of New York
* New York (state), a state in the northeastern United States
New York may also refer to:
Film and television
* '' ...
and
Connecticut
Connecticut () is the southernmost state in the New England region of the Northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, New York to the west, and Long Island Sound to the south. Its cap ...
to
First Niagara Financial Group Inc, and divestures to
KeyCorp
KeyBank, the primary subsidiary of KeyCorp, is a regional bank headquartered in Cleveland, Ohio, and is the only major bank based in Cleveland. KeyBank is one of the largest banks in the United States.
Key's customer base spans retail, small ...
,
Community Bank, N.A.
Community Bank, N.A. (CBNA), is a commercial bank serving customers in Upstate New York, Northeastern Pennsylvania
Northeastern Pennsylvania (NEPA) is a geographic region of the U.S. state of Pennsylvania that includes the Pocono Mountains, ...
and
Five Star Bank for around $1 billion, and announced the closure of 13 branches in Connecticut and
New Jersey
New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north and east by the state of New York; on the east, southeast, and south by the Atlantic Ocean; on the west by the Delaware ...
. The rest of HSBC's U.S. network will only be about half from a total 470 branches before divestments. On 9 August 2011,
Capital One
Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States. It is on the list o ...
Financial Corp. agreed to acquire HSBC's U.S. credit card business for $2.6 billion, netting HSBC Holdings an estimated after-tax profit of $2.4 billion. In September it was announced that HSBC sought to sell its general insurance business for around $1 billion.
In 2012, HSBC was the subject of hearings of the
U.S. Senate
The United States Senate is the upper chamber of the United States Congress, with the House of Representatives being the lower chamber. Together they compose the national bicameral legislature of the United States.
The composition and powe ...
permanent subcommittee for investigations for severe deficiencies in its
anti-money laundering
Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdicti ...
practices (see
Controversies
Controversy is a state of prolonged public dispute or debate, usually concerning a matter of conflicting opinion or point of view. The word was coined from the Latin ''controversia'', as a composite of ''controversus'' – "turned in an opposite d ...
). On 16 July the committee presented its findings. Among other things, it concluded that HSBC had been transferring $7 billion in banknotes from its Mexican to its US subsidiary (much of it related to
drug dealing
The illegal drug trade or drug trafficking is a global black market dedicated to the cultivation, manufacture, distribution and sale of prohibited drugs. Most jurisdictions prohibit trade, except under license, of many types of drugs throug ...
), was disregarding terrorist financing links
and was actively circumventing US safeguards to block transactions involving terrorists, drug lords and rogue regimes, including hiding $19.4 billion in transactions with Iran. This investigation followed on from a probe by the US Federal Reserve and Office of the Comptroller of the Currency found that there was "significant potential for unreported money laundering or terrorist financing".
On 11 December 2012, HSBC agreed to pay a record $1.92 billion fine in this money laundering case. "Bank officials repeatedly ignored internal warnings that HSBC's monitoring systems were inadequate, the Justice Department said. In 2008, for example, the CEO of HSBC Mexico was told that Mexican law enforcement had a recording of a Mexican drug lord saying that HSBC Mexico was the place to launder money."
The
United States Department of Justice
The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United State ...
, however, decided not to pursue criminal penalties, a decision which the ''
New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid d ...
'' labelled a "dark day for the rule of law." HSBC chief executive Stuart Gulliver said: "We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again."
Since 2013
In July 2013, Alan Keir was appointed chief executive of
HSBC Bank plc
HSBC UK Bank plc is a British multinational banking and financial services organisation based in Birmingham, England. It is part of HSBC Holdings.
HSBC UK Bank plc is one of the four major clearing banks in the United Kingdom and is a wholly ...
after Brian Robertson resigned from his post. Keir's duties include overseeing the firm's UK, European, Middle Eastern, and African divisions.
In June 2014, an indirect wholly-owned subsidiary HSBC Life (UK) Limited agreed to sell its £4.2 billion UK pensions business to
Swiss Re
Swiss Reinsurance Company Ltd,
Swiss Re. Retrieved on 18 January 2011. "Swiss Reinsurance Company Ltd ("Swiss Re") ...
.
In February 2015 the
International Consortium of Investigative Journalists
The International Consortium of Investigative Journalists, Inc. (ICIJ), is an independent global network of 280 investigative journalists and over 140 media organizations spanning more than 100 countries. It is based in Washington, D.C. with pe ...
released information about the business conduct of HSBC under the title ''
Swiss Leaks'' based on the 2007 hacked HSBC account records from whistle-blower
Hervé Falciani
Hervé Daniel Marcel Falciani (; born 9 January 1972) is a French-Italian systems engineer and whistleblower who is credited with "the biggest banking leak in history." In 2008, Falciani began collaborating with numerous European nations by pro ...
. The ICIJ alleges that the bank profited from doing business with corrupt politicians, dictators, tax evaders, dealers of blood diamonds, arms dealers and other clients.
US Senate investigators in 2012 had sought the hacked HSBC account records from Falciani and French authorities, but never received the data.
HSBC announced in August 2015 that it would be selling its
Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
ian unit to
Banco Bradesco
Banco Bradesco S.A. is a Brazilian financial services company headquartered in Osasco, in the state of São Paulo, Brazil. It is the third largest banking institution in Brazil, as well as the third largest in Latin America, and the seventy-ni ...
for $5.2 billion following years of disappointing performance. In 2015, HSBC was recognised as the most trusted foreign bank in India by The Brand Trust Report 2015.
In 2016, the bank was mentioned numerous times in connection with the
Panama Papers
The Panama Papers ( es, Papeles de Panamá) are 11.5 million leaked documents (or 2.6 terabytes of data) that were published beginning on April 3, 2016. The papers detail financial and attorney–client information for more than 214,488 ...
investigation. Many Syrians were angered when their accounts were judged high-risk and closed, despite the bank reportedly telling
Mossack Fonseca
Mossack Fonseca & Co. () was a Panamanian law firm and Corporate services, corporate service provider.[Rami Makhlouf
Rami Makhlouf ( ar, رَامِي مَخْلُوف, Rāmī Maḫlūf; born 10 July 1969) is a Syrian businessman and the maternal cousin of president Bashar al-Assad. At the beginning of the Syrian civil war, Syrian Civil War in 2011, he was con ...](_blank)
as a customer, even though US Treasury sanctions against him were in effect at the time.
On 20 March 2017, the British newspaper ''
The Guardian
''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers ''The Observer'' and ''The Guardian Weekly'', ''The Guardian'' is part of the Gu ...
'' reported that hundreds of banks had helped launder
KGB
The KGB (russian: links=no, lit=Committee for State Security, Комитет государственной безопасности (КГБ), a=ru-KGB.ogg, p=kəmʲɪˈtʲet ɡəsʊˈdarstvʲɪn(ː)əj bʲɪzɐˈpasnəsʲtʲɪ, Komitet gosud ...
-related funds out of
Russia
Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...
, as uncovered by an investigation named
Global Laundromat
The Russian Laundromat was a scheme to move $20–80 billion out of Russia from 2010 to 2014 through a network of global banks, many of them in Moldova and Latvia. The ''Guardian'' reported that around 500 people were suspected of being inv ...
. HSBC was listed among the 17 banks in the UK that were "facing questions over what they knew about the international scheme and why they did not turn away suspicious money transfers," as HSBC "processed $545.3m in Laundromat cash, mostly routed through its
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
branch." Other banks facing scrutiny under the investigation included the
Royal Bank of Scotland
The Royal Bank of Scotland plc (RBS; gd, Banca Rìoghail na h-Alba) is a major retail and commercial bank in Scotland. It is one of the retail banking subsidiaries of NatWest Group, together with NatWest (in England and Wales) and Ulster Bank ...
,
NatWest
National Westminster Bank, commonly known as NatWest, is a major retail and commercial bank in the United Kingdom based in London, England. It was established in 1968 by the merger of National Provincial Bank and Westminster Bank. In 2000, it ...
,
Lloyds,
Barclays
Barclays () is a British multinational universal bank, headquartered in London, England. Barclays operates as two divisions, Barclays UK and Barclays International, supported by a service company, Barclays Execution Services.
Barclays traces ...
and
Coutts
Coutts & Co. is a London-headquartered private bank and wealth manager. Founded in 1692, it is the eighth oldest bank in the world. Today, Coutts forms part of NatWest Group's wealth management division. In the Channel Islands and the Isle of ...
. In response, HSBC stated that it was against financial crime, and that the case "highlights the need for greater information sharing between the public and private sectors."
On 1 October 2017,
Mark Tucker succeeded Douglas Flint as group chairman of HSBC, the first non-executive and outside chairman appointed by the group. Also in October 2017, HSBC announced that John Flint, chief executive of Retail Banking and Wealth Management, would succeed Stuart Gulliver as Group Chief Executive on 21 February 2018. It was further announced on 5 August 2019 that Flint was leaving and his role would be filled on a temporary basis by Noel Quinn, head of HSBC's global commercial bank. Noel Quinn was subsequently appointed to the role on a permanent basis in March 2020.
In February 2020, HSBC announced it would cut 35,000 jobs worldwide after it was announced corporate profits decreased by 33% in 2019.
In October 2020, HSBC committed to achieve zero-emission by 2050, e.g., by this year it would not only become carbon neutral by itself but also will work only with carbon-neutral clients. It also committed to providing 750–1,000 billion dollars to help clients make the transition. It also pledged to achieve
carbon neutrality
Carbon neutrality is a state of net-zero carbon dioxide emissions. This can be achieved by balancing emissions of carbon dioxide with its removal (often through carbon offsetting) or by eliminating emissions from society (the transition to the "p ...
in his own operations by 2030.
In January 2021, HSBC announced that it would be closing 82 branches in Britain. In May 2021, HSBC announced the exit of US retail banking business by selling 10 California branches to
Cathay Bank
Cathay Bank () is an American bank founded in 1962.
Cathay is headquartered in Chinatown, Los Angeles, with a corporate center in nearby El Monte, California. It has branches in California, Massachusetts, New York, Texas, Washington, I ...
and 80 branches to
Citizens Financial Group
Citizens Financial Group, Inc. is an American bank headquartered in Providence, Rhode Island, which operates in the states of Connecticut, Delaware, Florida, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsyl ...
and closing the remaining branches. The bank said it intends to focus on the banking and wealth management needs of globally connected affluent and high net worth clients.
In August 2021, HSBC announced the acquisition of
AXA
Axa S.A. (styled as ''AXA'' or GIG in the Middle East) is a French multinational insurance company. The head office is in the 8th arrondissement of Paris, France. It also provides investment management and other financial services.
The Ax ...
Singapore. HSBC Insurance (Asia-Pacific) Holdings Ltd, an indirect wholly-owned subsidiary of HSBC would acquire 100% of the issued share capital of AXA Singapore for $575m. In December 2021, HSBC Asset Management (India) Private Ltd, an indirect wholly-owned subsidiary of HSBC announced it would acquire L&T Investment Management for $425 million from
L&T Finance Holdings.
In October 2020, HSBC committed to achieve zero emission by 2050, e.g., by this year it would not only become carbon neutral by itself but also will work only with carbon neutral clients. It also committed to provide between 750 billion and 1 trillion dollars to help clients make the transition. It also pledged to achieve carbon neutrality in his own operations by 2030. In May 2021, HSBC committed to end the financing of the
coal industry
Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen.
Coal is formed when de ...
, with a commitment to publish a new coal policy and provide further detail on its climate strategy by the end of 2021. The organisation's "Thermal Coal Phase-Out Policy" was published in December 2021.
In July 2022, HSBC became the first foreign lender to open a
Chinese Communist Party
The Chinese Communist Party (CCP), officially the Communist Party of China (CPC), is the founding and One-party state, sole ruling party of the China, People's Republic of China (PRC). Under the leadership of Mao Zedong, the CCP emerged victoriou ...
(CCP) committee in its Chinese investment banking subsidiary.
The subsidiary, HSBC Qianhai Securities, is a 90% HSBC-owned joint venture.
In November 2022, HSBC announced the exit of Canadian market.
Royal Bank of Canada
Royal Bank of Canada (RBC; french: Banque royale du Canada) is a Canadian multinational financial services company and the largest bank in Canada by market capitalization. The bank serves over 17 million clients and has more than 89,000& ...
will acquire 100% of the common shares of HSBC Canada for an all-cash purchase price of $13.5 billion, which is a multiple of 9.4 times HSBC Canada's estimated 2024 earnings. Completion of the transaction is expected by late 2023, subject to regulatory approvals. HSBC has been under pressure to cut costs and divest non-Asian businesses.
Operations
![HSBC World](https://upload.wikimedia.org/wikipedia/commons/5/5e/HSBC_World.svg)
HSBC has its world headquarters at
8 Canada Square
8 Canada Square (also known as the HSBC Tower) is a skyscraper in Canary Wharf, London. The building serves as the global headquarters of the HSBC Group. The building has 45 storeys and houses approximately 8,000 employees.
Design and construct ...
in
Canary Wharf
Canary Wharf is an area of London, England, located near the Isle of Dogs in the London Borough of Tower Hamlets. Canary Wharf is defined by the Greater London Authority as being part of London's central business district, alongside Central Lo ...
,
London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
.
Size, profit and auditors
* 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
Citigroup Inc. or Citi (Style (visual arts), stylized as citi) is an American multinational investment banking, investment bank and financial services corporation headquartered in New York City. The company was formed by the merger of banking ...
's $3.62 billion and
Bank of America
The Bank of America Corporation (often abbreviated BofA or BoA) is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina. The bank w ...
's $14.98 billion in the same period).
* In June 2006,
The Economist
''The Economist'' is a British weekly newspaper printed in demitab format and published digitally. It focuses on current affairs, international business, politics, technology, and culture. Based in London, the newspaper is owned by The Econo ...
stated that since the end of 2005 HSBC has been rated the largest banking group in the world by
Tier 1 capital
Tier 1 capital is the core measure of a bank's financial strength from a regulator's point of view.By definition of Bank for International Settlements. It is composed of ''core capital'', which consists primarily of common stock and disclosed res ...
. In June 2014
The Banker
''The Banker'' is an English-language monthly international financial affairs publication owned by ''The Financial Times'' Ltd. and edited in London, United Kingdom. The magazine was first published in January 1926 through founding Editor, Brend ...
ranked HSBC first in Western Europe and 5th in the world for
Tier 1 capital
Tier 1 capital is the core measure of a bank's financial strength from a regulator's point of view.By definition of Bank for International Settlements. It is composed of ''core capital'', which consists primarily of common stock and disclosed res ...
.
* In February 2008, HSBC was named the world's most valuable banking brand by ''The Banker'' magazine.
* HSBC has been audited by
PwC
PricewaterhouseCoopers is an international professional services brand of firms, operating as partnerships under the PwC brand. It is the second-largest professional services network in the world and is considered one of the Big Four accounting ...
, one of the
Big Four auditors
The Big Four are the four largest professional services networks in the world, the global accounting networks Deloitte, Ernst & Young (EY), KPMG, and PricewaterhouseCoopers (PwC). The four are often grouped because they are comparable in size r ...
since 2015.
Brexit
In preparation for
Brexit
Brexit (; a portmanteau of "British exit") was the withdrawal of the United Kingdom (UK) from the European Union (EU) at 23:00 GMT on 31 January 2020 (00:00 1 February 2020 CET).The UK also left the European Atomic Energy Community (EAEC or ...
, HSBC announced that it will be facing as much as $300 million in legal and relocation fees as it plans to relocate 1,000 staff members from London to Paris.
In the second quarter of 2017, the bank had $4 million in charges for "costs associated with the U.K.'s exit from the EU".
HSBC plans to move roughly one-fifth of its London-based investment bankers to its Paris offices in order to maintain a continuous access point to the European Union's single market.
While its headquarters will remain in London, the staff movement is expected to avoid a loss of $1 billion of revenue after Brexit.
Principal subsidiaries
![HSBC Colombo](https://upload.wikimedia.org/wikipedia/commons/b/bc/HSBC_Colombo.jpg)
These are HSBC's subsidiaries worldwide:
;Asia Pacific
* HSBC Armenia
* HSBC Bangladesh
*
HSBC Bank Australia
*
HSBC Bank India
HSBC Bank India, an Indian subsidiary of UK-based HSBC Holdings plc, is a bank with its operational head office in Mumbai. It is a foreign bank under the Banking Regulation Act, 1949 and thus is regulated by the Reserve Bank of India (RBI).
B ...
* HSBC Bank Indonesia
*
The Hongkong and Shanghai Banking Corporation
The Hongkong and Shanghai Banking Corporation Limited (), commonly known as HSBC (), was the parent entity of the multinational HSBC banking group until 1991, and is now its Hong Kong-based Asia-Pacific subsidiary. The largest bank in Hong K ...
**
Hang Seng Bank
Hang Seng Bank Limited () is a Hong Kong-based banking and financial services company with headquarters in Central, Hong Kong. It is one of Hong Kong's leading public companies in terms of market capitalisation and is part of the HSBC Group, ...
**
HSBC China
*
HSBC Bank Malaysia
HSBC Bank Malaysia Berhad was incorporated locally in Malaysia on 1 October 1984. It is part of the HSBC Group and is a wholly owned subsidiary of HSBC Holdings plc, headquartered in London.HSBC Sri Lanka
HSBC Sri Lanka is a banking and financial services company in Sri Lanka and is a licensed commercial bank supervised by the Central Bank of Sri Lanka. It is the largest and one of the oldest bank in Sri Lanka
Sri Lanka (, ; si, ශ්&zw ...
*
HSBC Taiwan
HSBC ceased retail banking operations in Thailand and Japan in 2012. HSBC entered Brunei in 1947 but commenced winding down its operations in April 2016 citing the bank's optimisation of its global network and reduced complexity. HSBC stopped offering Amanah (a retail banking product and service in compliance with the Islamic Shari'ah laws) in Bahrain, Bangladesh, Indonesia, Singapore and the UAE following a strategic review of its global Islamic Finance businesses, while the bank continues on offering the same Shari'ah compliant products and services in Malaysia and in Saudi Arabia.
;Europe
*
HSBC Bank (Europe)
HSBC UK Bank plc is a British multinational banking and financial services organisation based in Birmingham, England. It is part of HSBC Holdings.
HSBC UK Bank plc is one of the four major clearing banks in the United Kingdom and is a wholly ...
**
HSBC France
HSBC Continental Europe (formerly HSBC France SA) is a subsidiary of HSBC, headquartered in the 8th arrondissement of Paris.
History
It was formed on 1 November 2005 when HSBC rebranded CCF S.A. (Crédit Commercial de France), together with i ...
** HSBC Greece
**
HSBC Trinkaus und Burkhardt AG
*
HSBC Bank Malta
HSBC Bank Malta plc is the Maltese subsidiary of the British multinational banking and financial services company HSBC. The company is headquartered in Qormi and operates over 30 branches and offices throughout the islands of Malta and Go ...
*
HSBC Private Bank (Suisse)
HSBC Holdings plc is a British multinational universal bank and financial services holding company. It is the largest bank in Europe by total assets ahead of BNP Paribas, with US$2.953 trillion as of December 2021. In 2021, HSBC had $10.8 tril ...
SA
* HSBC UK Bank plc
Further,
HSBC Private Bank
HSBC Global Private Banking is part of the Wealth and Personal Banking division within the HSBC Group (as of 2020, HSBC was the world's sixth largest bank by total assets and market capitalization) They provide award winning private banking ser ...
is a name for UK-based
private banking
Private banking is banking, investment and other financial services provided by banks and financial institutions primarily serving high-net-worth individuals (HNWIs)—defined as those with very high levels of income or sizable assets. A bank that ...
division.
HSBC Expat
HSBC Expat, formerly HSBC International, is the offshore banking arm of the HSBC Group and is wholly owned by HSBC Holdings plc
HSBC Holdings plc is a British multinational universal bank and financial services holding company. It is the lar ...
is the
offshore bank
An offshore bank is a bank regulated under international banking license (often called offshore license), which usually prohibits the bank from establishing any business activities in the jurisdiction of establishment. Due to less regulation and ...
ing division of the HSBC Group based in
St Helier
St Helier (; Jèrriais: ; french: Saint-Hélier) is one of the twelve parishes of Jersey, the largest of the Channel Islands in the English Channel. St Helier has a population of 35,822 – over one-third of the total population of Jersey – ...
,
Jersey
Jersey ( , ; nrf, Jèrri, label=Jèrriais ), officially the Bailiwick of Jersey (french: Bailliage de Jersey, links=no; Jèrriais: ), is an island country and self-governing Crown Dependencies, Crown Dependency near the coast of north-west F ...
that focuses on providing finance and cross border services to
expatriate
An expatriate (often shortened to expat) is a person who resides outside their native country. In common usage, the term often refers to educated professionals, skilled workers, or artists taking positions outside their home country, either ...
s and
migrants.
;Americas
*
HSBC Bank Argentina
HSBC Bank Argentina S.A. is the principal HSBC operating company in Argentina. The seventh-largest bank in the country, it provides a full range of banking and financial products and services, including commercial, consumer and corporate banking, ...
*
HSBC Bank Bermuda
*
HSBC Bank Canada
HSBC Bank Canada (french: Banque HSBC Canada), formerly the Hongkong Bank of Canada (HBC), is a Canadian chartered bank and the Canadian subsidiary of British multinational banking and financial services company HSBC. HSBC Canada is the seventh ...
*
HSBC Bank USA
HSBC Bank USA, National Association, an American subsidiary of multinational company HSBC, is a bank with its operational head office in New York City and its nominal head office in McLean, Virginia (as designated on its charter). HSBC Bank USA, ...
*
HSBC Finance
HSBC Finance Corporation is a financial services company and a subsidiary of HSBC Holdings. It is the sixth-largest issuer of MasterCard and Visa credit cards in the United States. HSBC Finance Corporation was formed from the legal entity th ...
Corporation
*
HSBC México
HSBC México, S.A., the principal operating company of Grupo Financiero HSBC, S.A. de C.V., is one of Mexico’s four largest banking and financial service companies, with 1,400 branches and 5,200 ATMs. HSBC purchased Banco Internacional, S.A. ...
* HSBC Securities (USA) Inc.
;Middle East and North Africa
![Centre-ville de Beyrouth](https://upload.wikimedia.org/wikipedia/commons/7/76/Centre-ville_de_Beyrouth.JPG)
*
HSBC Bank Egypt
HSBC Bank Egypt SAE is a multinational bank in Egypt, providing a wide range of banking and related financial services through a network of 100 branches and 20 mini bank units in Cairo, Alexandria, Sharm El Sheikh, Hurghada, Borg El Arab and 6t ...
* HSBC Bank Jordan
*
HSBC Bank Middle East
HSBC Bank Middle East Limited is the largest and most widely represented international bank in the Middle East.
History
The Imperial Bank of Persia (Persian: بانک شاهنشاهی ایران; Bank-e Šâhanšâhi-ye Irân) was a British ban ...
*
HSBC Bank (Turkey)
HSBC Bank A.Ş., the Turkey subsidiary of the HSBC Group, is a bank with its head office in Istanbul.
History
HSBC Bank A.Ş. was established as Midland Bank A.Ş. in 1990. It was a subsidiary of Midland Bank and was the first British bank in ...
*
The Saudi British Bank
The Saudi British Bank (SABB) ( ar, البنك السعودي البريطاني (ساب)) is a Riyadh-based Tadawul#Banks .26 Financial Services, Saudi joint stock company in which United Kingdom, British banking firm HSBC Holdings PLC owns a ...
**
HSBC Saudi Arabia
HSBC Saudi Arabia Limited is a joint venture between The Saudi British Bank (SABB) and HSBC Holdings plc, established in 2005, as a limited liability company headquartered in Riyadh, Saudi Arabia with a share capital of SAR 50 million (US$13.33 m ...
Principal business groups and divisions
HSBC organises its customer-facing activities within three business groups: Commercial Banking (CMB); Global Banking and Markets (GBM); Wealth and Personal Banking (WPB).
Commercial banking
HSBC provides financial services to small, medium-sized and middle-market enterprises. The group has more than 2 million such customers, including
sole proprietors
A sole proprietorship, also known as a sole tradership, individual entrepreneurship or proprietorship, is a type of enterprise owned and run by one person and in which there is no legal distinction between the owner and the business entity. A sole ...
, partnerships, clubs and
associations, incorporated businesses and publicly quoted companies.
In December 2015, HSBC announced that Noel Quinn will succeed
Simon Cooper as the chief executive officer of Commercial Banking. Simon Cooper has decided to leave the bank to pursue other opportunities.
Global banking and markets
Global Banking and Markets is the investment banking arm of HSBC. For Global Banking, it provides investment banking and financing products for corporate and institutional clients, including corporate banking,
investment banking
Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated wit ...
, capital markets, trade services, payments and
cash management, and leveraged acquisition finance. For Markets and Securities Services, it provides services in equities, credit and rates, foreign exchange, money markets and
securities services
A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...
. Global Banking and Markets has offices in more than 60 countries and territories worldwide, and positions itself as "emerging markets-led and financing-focused".
Wealth and personal banking
Wealth and Personal Banking helps customers to take care of their day-to-day finances and to manage, protect and grow their wealth. HSBC provides more than 54 million customers worldwide with a full range of personal financial services, including
current
Currents, Current or The Current may refer to:
Science and technology
* Current (fluid), the flow of a liquid or a gas
** Air current, a flow of air
** Ocean current, a current in the ocean
*** Rip current, a kind of water current
** Current (stre ...
and
savings account
A savings account is a bank account at a retail bank. Common features include a limited number of withdrawals, a lack of cheque and linked debit card facilities, limited transfer options and the inability to be overdrawn. Traditionally, transac ...
s,
mortgage loan
A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any p ...
s, 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.
In 2020, HSBC announced merging two of its business lines: Retail Banking and Wealth Management & Global Private Banking to form a new business unit as Wealth and Personal Banking.
Group service centers
![HSBC Group Service Center, Rajagiriya](https://upload.wikimedia.org/wikipedia/commons/2/25/HSBC_Group_Service_Center%2C_Rajagiriya.jpg)
As a cost-saving measure HSBC is
offshoring
Offshoring is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Usually this refers to a company business, although state gover ...
processing work to lower-cost economies in order to reduce the cost of providing services in developed countries. These locations take on work such as
data processing
Data processing is the collection and manipulation of digital data to produce meaningful information.
Data processing is a form of ''information processing'', which is the modification (processing) of information in any manner detectable by an ...
and
customer service
Customer service is the assistance and advice provided by a company to those people who buy or use its products or services. Each industry requires different levels of customer service, but in the end, the idea of a well-performed service is that ...
, but also internal
software engineering
Software engineering is a systematic engineering approach to software development.
A software engineer is a person who applies the principles of software engineering to design, develop, maintain, test, and evaluate computer software. The term '' ...
at
Pune
Pune (; ; also known as Poona, (List of renamed Indian cities and states#Maharashtra, the official name from 1818 until 1978) is one of the most important industrial and educational hubs of India, with an estimated population of 7.4 million ...
(India),
Gurgaon
Gurgaon (pronunciation: ʊɽɡãːw, officially named Gurugram (pronunciation: ʊɾʊɡɾaːm, is a city located in the northern Indian state of Haryana. It is situated near the Delhi–Haryana border, about southwest of the nationa ...
(India),
Bangalore
Bangalore (), officially Bengaluru (), is the capital and largest city of the Indian state of Karnataka. It has a population of more than and a metropolitan population of around , making it the third most populous city and fifth most ...
(India),
Chennai
Chennai (, ), formerly known as Madras ( the official name until 1996), is the capital city of Tamil Nadu, the southernmost Indian state. The largest city of the state in area and population, Chennai is located on the Coromandel Coast of th ...
(India),
Hyderabad
Hyderabad ( ; , ) is the capital and largest city of the Indian state of Telangana and the ''de jure'' capital of Andhra Pradesh. It occupies on the Deccan Plateau along the banks of the Musi River (India), Musi River, in the northern part ...
(India),
Vishakhapatnam
, image_alt =
, image_caption = From top, left to right: Visakhapatnam aerial view, Vizag seaport, Simhachalam Temple, Aerial view of Rushikonda Beach, Beach road, Novotel Visakhapatnam, INS Kursura submarine museum, ...
(India),
Kolkata
Kolkata (, or , ; also known as Calcutta , the official name until 2001) is the capital of the Indian state of West Bengal, on the eastern bank of the Hooghly River west of the border with Bangladesh. It is the primary business, comme ...
(India),
Colombo
Colombo ( ; si, කොළඹ, translit=Koḷam̆ba, ; ta, கொழும்பு, translit=Koḻumpu, ) is the executive and judicial capital and largest city of Sri Lanka by population. According to the Brookings Institution, Colombo me ...
(Sri Lanka),
Guangzhou
Guangzhou (, ; ; or ; ), also known as Canton () and alternatively romanized as Kwongchow or Kwangchow, is the capital and largest city of Guangdong province in southern China. Located on the Pearl River about north-northwest of Hong Kon ...
(China),
Curitiba
Curitiba () is the capital and largest city in the state of Paraná (state), Paraná in Brazil. The city's population was 1,948,626 , making it the List of cities in Brazil by population, eighth most populous city in Brazil and the largest in ...
(Brazil) and
Kuala Lumpur
, anthem = '' Maju dan Sejahtera''
, image_map =
, map_caption =
, pushpin_map = Malaysia#Southeast Asia#Asia
, pushpin_map_caption =
, coordinates =
, su ...
(Malaysia). Chief Operating Officer Alan Jebson said in March 2005 that he would be very surprised if fewer than 25,000 people were working in the centers over the next three years: "I don't have a precise target but I would be surprised if we had less than 15 (global service centers) in three years' time." He went on to say that each centre cost the bank from $20m to $30m to set up, but that for every job moved the bank saves about $20,000 (£10,400).
Trades union
A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits ...
s, particularly in the UK and US, blame these centers for job losses in developed countries, and also for the effective imposition of wage caps on their members.
Products
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 USA in November 2005 and is based on HSBC's '
First Direct
First Direct (styled first direct) is a telephone and internet based retail bank division of HSBC Bank plc based in the United Kingdom. First Direct has headquarters in Leeds, England, and has 1.45 million customers. It was awarded Most T ...
' subsidiary in Britain which was launched in the 1980s. The service is now also available in Canada, Taiwan, South Korea, Australia, France. Poland is launching business direct in September 2009. In the US, HSBC Direct is now part of HSBC Advance.
HSBCnet
HSBCnet provides access to transaction banking functionality – ranging from payments and cash management to trade services features – as well as to research and analytical content from HSBC. It also includes foreign exchange and money markets trading functionality. The system is used widely by HSBC's high-end corporate and institutional clients served variously by the bank's global banking and markets, commercial banking, and global transaction banking divisions. HSBCnet is also the brand under which HSBC markets its global e-commerce proposition to its corporate and institutional clients.
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 monthly direct deposit or maintain US$5,000 of deposit/investments or residential mortgage. Business owners may use commercial relationship to qualify. Advantages may vary depending on country, such as day-to-day banking services including but not limited to a Platinum Credit Card, Advance ATM Card, Current Account and Savings Account. Protection plans and Financial Planning Services. A HSBC Advance customer enables the customer to open accounts in another country and transfer their credit history.
HSBC Premier
HSBC Premier is the group's premium financial services product. It has its own portfolio of credit cards around the world. The exact benefits and qualification criteria vary depending on the country. Customers have a dedicated premier relationship manager, global 24-hour access to call centres, free banking services, and preferential rates. A HSBC Premier customer receives the HSBC Premier services in all countries that offer HSBC Premier, without having to meet that country's qualifying criteria ("Premier in One, Premier in All").
HSBC Jade
HSBC Jade is an invite-only financial services product aimed at individuals with net worths typically between $1 million and $5 million in investible assets held with HSBC. Before invitation, members must be HSBC Premier members for a designated period of time. In addition to HSBC Premier benefits, HSBC Jade have select concierge services, estate planning services, and access to Jade Centres around the globe.
Leadership
Current leadership
* Group Chairman:
Mark Tucker (October 2017 to present)
[HSBC Leadership (Board of Directors)]
*Group Chief Executive:
Noel Quinn
Noel Paul Quinn (born 13 January 1962) is a British banking businessman who is the chief executive (CEO) of HSBC since March 2020, having succeeded John Flint. He initially assumed the role on an interim basis in August 2019.
Early life
Quinn ...
(March 2020 to present)
List of previous Group Chairmen
The position of Group Chairman was formed in 1991; the preceding position, Chairman of
The Hongkong and Shanghai Banking Corporation
The Hongkong and Shanghai Banking Corporation Limited (), commonly known as HSBC (), was the parent entity of the multinational HSBC banking group until 1991, and is now its Hong Kong-based Asia-Pacific subsidiary. The largest bank in Hong K ...
, remains an active position today.
#
Sir William Purves (1991–1998)
#
Sir John Bond (1998–2006)
#
The Lord Green (2006–2010)
#
Sir Douglas Flint (2010–2017)
List of previous Group Chief Executives
The position of Group Chief Executive was formed in 1991; the preceding position, Chief Executive of
The Hongkong and Shanghai Banking Corporation
The Hongkong and Shanghai Banking Corporation Limited (), commonly known as HSBC (), was the parent entity of the multinational HSBC banking group until 1991, and is now its Hong Kong-based Asia-Pacific subsidiary. The largest bank in Hong K ...
, remains an active position today.
#
Sir William Purves (1991–1993)
#
Sir John Bond (1993–1998)
#
Sir Keith Whitson (1998–2003)
#
The Lord Green (2003–2006)
[
# ]Michael Geoghegan
Michael may refer to:
People
* Michael (given name), a given name
* Michael (surname), including a list of people with the surname Michael
Given name "Michael"
* Michael (archangel), ''first'' of God's archangels in the Jewish, Christian an ...
(2007–2010)
# Stuart Gulliver (2011–2018)
# John Flint (2018–2019)
Controversies
Money laundering
In both 2003 and 2010, U.S. regulators ordered HSBC to strengthen its anti-money laundering practices.[HSBC: Too big to jail?](_blank)
''CNNMoney'', James O'Toole, 12 December 2012. In October 2010, the United States OCC issued a Cease and Desist Order
A cease and desist letter is a document sent to an individual or business to stop alleged illegal activity. The phrase "cease and desist" is a legal doublet, made up of two near-synonyms. The letter may warn that, if the recipient does not dis ...
requiring HSBC to strengthen multiple aspects of its Anti-Money Laundering (AML) program. The identified problems included a once massive backlog of over 17,000 alerts identifying suspicious activity, failure to file timely suspicious activity report
In financial regulation, a Suspicious Activity Report (SAR) or Suspicious Transaction Report (STR) is a report made by a financial institution about suspicious or potentially suspicious activity. The criteria to decide when a report must be ma ...
s with U.S. law enforcement, failure to conduct any due diligence
Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care.
It can be a l ...
to assess risks to HSBC affiliates before opening correspondent account A correspondent account is an account (often called a nostro or vostro account) established by a banking institution to receive deposits from, make payments on behalf of, or handle other financial transactions for another financial institution. Cor ...
s for them, a three-year failure by HBUS from mid-2006 to mid-2009 to conduct any AML of $15 billion in bulk cash transactions from those same HSBC affiliates, failure to monitor $60 trillion in annual wire transfers by customers in countries rated lower risk by HBUS, and inadequate and unqualified AML staffing, resources, and leadership. It was noted that HSBC fully cooperated with the Senate investigation.
In 2012, HSBC was fined by $14 million by Argentina for failure to report suspicious transactions in the country in 2008.
On 19 July 2012, India investigated alleged violation of safety compliance, in which Indian employees were believed to be involved. On 9 November 2012, Indian activist and politician Arvind Kejriwal
Arvind Kejriwal (Hindi: ɾʋin̪d̪ ked͡ʒɾiːʋaːl born 16 August 1968) is an Indian politician, former bureaucrat, and activist who is the 7th and current Chief Minister of Delhi since February 2015. Currently, he is the national conv ...
said he had details of 700 Indian bank accounts hiding black money with a total value of with HSBC in Geneva
Geneva ( ; french: Genève ) frp, Genèva ; german: link=no, Genf ; it, Ginevra ; rm, Genevra is the List of cities in Switzerland, second-most populous city in Switzerland (after Zürich) and the most populous city of Romandy, the French-speaki ...
. In June 2013, a media outlet in India did an undercover expose where HSBC officers were caught on camera agreeing to launder "black money." HSBC placed these employees on leave pending their own internal investigation.
In November 2012, it was reported that HSBC had set up offshore accounts in Jersey
Jersey ( , ; nrf, Jèrri, label=Jèrriais ), officially the Bailiwick of Jersey (french: Bailliage de Jersey, links=no; Jèrriais: ), is an island country and self-governing Crown Dependencies, Crown Dependency near the coast of north-west F ...
for suspected drug-dealers and other criminals, and that HM Revenue and Customs
HM Revenue and Customs (His Majesty's Revenue and Customs, or HMRC) is a non-ministerial government department, non-ministerial Departments of the United Kingdom Government, department of the His Majesty's Government, UK Government responsible fo ...
had launched an investigation following a whistle blower
A whistleblower (also written as whistle-blower or whistle blower) is a person, often an employee, who reveals information about activity within a private or public organization that is deemed illegal, immoral, illicit, unsafe or fraudulent. Whi ...
leaking details of £700 million allegedly held in HSBC accounts in the Crown dependency.
Following search warrants and raids beginning in January 2013, in mid-March 2013 Argentina's main taxing authority accused HSBC of using fake receipts and dummy accounts to facilitate money laundering and tax evasion.
In early February 2013, appearing before UK's Parliamentary Banking Standards Commission, CEO Stuart Gulliver acknowledged that the structure of the bank had been "not fit for purpose." He also stated, "Matters that should have been shared and escalated were not shared and escalated."[Terrorists and drug lords targeted HSBC, bosses admit](_blank)
The Independent K Simon English, 6 February 2013. HSBC has also been accused of laundering money for terrorist groups.
In June 2015, HSBC was fined by the Geneva authorities after an investigation into money laundering within its Swiss subsidiary. The fine was 40 million Swiss Francs.
In 2018, HSBC was fined 15 million rand by South Africa's central bank for weaknesses in its processes meant to detect money laundering and terrorism financing, though it also added that HSBC was not found to have facilitated any transactions involving money laundering or the financing of terrorism in South Africa.
In 2020, HSBC told AUSTRAC that it may have broken Australia's anti money laundering and counter-terrorism laws after allegedly failing to report thousands of transactions to AUSTRAC.
In July 2021, HSBC disclosed that in 2016 it discovered a suspected money laundering network that received $4.2 billion worth of payments which has raised questions over whether it disclosed this appropriately to US monitors as the bank was still under probation by U.S. authorities over anti-money laundering concerns.
In December 2021, HSBC was fined 64 million pounds ($85 million) by British regulators for failings in its anti-money laundering processes spanning eight years.
US Senate investigation (2012)
In July 2012, a US Senate committee issued a report which stated that HSBC had been in breach of money-laundering rules, and had assisted Iran and North Korea to circumvent US nuclear-weapons sanctions.
In December 2012, Assistant U.S. Attorney General Lanny Breuer suggested that the U.S. government might resist criminal prosecution of HSBC which could lead to the loss of the bank's U.S. charter. He stated, "Our goal here is not to bring HSBC down, it's not to cause a systemic effect on the economy, it's not for people to lose thousands of jobs."
In December 2012, HSBC was penalised $1.9 billion (US), the largest fine under the Bank Secrecy Act
The Bank Secrecy Act of 1970 (BSA), also known as the Currency and Foreign Transactions Reporting Act, is a U.S. law requiring financial institutions in the United States to assist U.S. government agencies in detecting and preventing money laund ...
, for violating four U.S. laws designed to protect the U.S. financial system. HSBC had allegedly laundered at least $881 million in drugs proceeds through the U.S. financial system for international cartels, as well as processing an additional $660 million for banks in US sanctioned countries. According to the report, "The U.S. bank subsidiary lsofailed to monitor more than $670 billion in wire transfers and more than $9.4 billion in purchases of physical dollars from its Mexico unit." As part of the agreement deferring its prosecution, HSBC acknowledged that for years it had ignored warning signs that drug cartels in Mexico were using its branches to launder millions of dollars, and also acknowledged that HSBC's international staff had stripped identifying information on transactions made through the United States from countries facing economic sanctions such as Iran and Sudan.
A December 2012 ''CNNMoney
CNN Business (formerly CNN Money) is a financial news and information website, operated by CNN. The website was originally formed as a joint venture between CNN.com and Time Warner's ''Fortune'' and ''Money'' magazines. Since the spin-off of Time ...
'' article compared the 1.9 billion dollar fine to HSBC's profit "last year" (2011) of 16.8 billion.
In 2016, HSBC was sued by Mexican families involved in deaths by organized-crime gangs for processing funds ("money laundering") for the Sinaloa cartel.
FinCEN Files (2020)
The FinCEN Files
The FinCEN Files are documents from the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN), that have been leaked to '' BuzzFeed News'' and the International Consortium of Investigative Journalists (ICIJ), and published globally on 20 ...
showed that HSBC continued to serve alleged criminals and corporations involved in government corruption, including $292 million for the Waked Family company Viva Panama between 2010 and 2016 before the United States Department of the Treasury
The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and t ...
declared it a drug money-laundering organization. HSBC's activities took place while the bank was under probation from the U.S. government; six former HSBC employees reported to the International Consortium of Investigative Journalists
The International Consortium of Investigative Journalists, Inc. (ICIJ), is an independent global network of 280 investigative journalists and over 140 media organizations spanning more than 100 countries. It is based in Washington, D.C. with pe ...
that the a deferred prosecution agreement for HSBC marked a "cultural shift" in the organization toward profit-making motives. Employees working in compliance at HSBC also expressed concern to Buzzfeed about what they felt were inadequate efforts to combat money laundering, including hasty investigations and unachievable internal investigation quotas. In response to the report HSBC said it is "continually seeking ways to improve" its financial crime compliance regime.
Forex, Libor and Euribor scandals (2014)
The bank was fined US$275m by the US CFTC in 2014 for taking part in the Forex scandal
The forex scandal (also known as the forex probe) is a 2013 financial scandal that involves the revelation, and subsequent investigation, that banks colluded for at least a decade to manipulate exchange rates on the forex market for their own fi ...
. The bank also settled for US$18m in the related Libor scandal and EUR 33m for the Euribor
The Euro Interbank Offered Rate (Euribor) is a daily reference rate, published by the European Money Markets Institute, based on the averaged interest rates at which Eurozone banks offer to lend unsecured funds to other banks in the euro whole ...
rate scandal (relative to other banks a small amount). In October 2020 HSBC was fined about $2.2 million over the Euribor
The Euro Interbank Offered Rate (Euribor) is a daily reference rate, published by the European Money Markets Institute, based on the averaged interest rates at which Eurozone banks offer to lend unsecured funds to other banks in the euro whole ...
rate scandal in Switzerland.
Belgian tax fraud, money laundering charges (2014)
In November 2014, HSBC was accused of tax fraud and money laundering by Belgian Prosecutors for helping hundreds of clients move money into offshore tax havens.
In August 2019, HSBC agreed to pay $336 million to settle the case.
Tax avoidance schemes (2015)
In February 2015, the International Consortium of Investigative Journalists
The International Consortium of Investigative Journalists, Inc. (ICIJ), is an independent global network of 280 investigative journalists and over 140 media organizations spanning more than 100 countries. It is based in Washington, D.C. with pe ...
released information about the bank's business conduct under the title '' Swiss Leaks''. The ICIJ alleges that the bank profited from doing business with tax evaders and other clients. The BBC #REDIRECT BBC #REDIRECT BBC
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...
reported that the bank had put pressure on media not to report about the controversy, with British newspaper ''
'' claiming bank advertising had been put "on pause" after ''The Guardian''s coverage of the matter.
'', resigned from the paper and in an open letter claimed the newspaper suppressed negative stories and dropped investigations into HSBC because of the bank's advertising.
In November 2017,
agreed to pay $352 million to settle a French investigation into the case.
In August 2019, the former head of HSBC Swiss from 2000 to 2008, Peter Braunwalder pleaded guilty in a French court for helping wealthy clients hide $1.8 billion. He was fined $560,000 and received a one-year suspended jail sentence.
In December 2019, HSBC Swiss agreed to pay a $192 million United States fine for the case.
charged two executives from HSBC Bank over an alleged $3.5 billion currency scheme which
ed HSBC clients and "manipulated the foreign exchange market to benefit themselves and their bank".
"Mark Johnson and Stuart Scott, both British citizens, are being accused".
"Stuart Scott, who was HSBC's European head of foreign exchange trading in London until December 2014, is accused of the same crimes. A warrant was issued for Scott's arrest, but he fled to Britain. In July 2018 the
ruled against extraditing him to the United States since most of the alleged crimes took place in Britain and because Scott has no significant connection to the United States.
Mark Johnson was later convicted of nine counts of wire fraud and conspiracy to defraud related to front running the currency trades of HSBC clients and sentenced to two years in federal prison. He was released after serving three months in prison and was allowed to return home to the U.K. while he pursued an appeal. November 2020 the U.S. Supreme Court declined to hear an appeal of his 2017 conviction, which was previously upheld by the
. It meant he would have to return to the U.S. to serve his sentence. In February 2021 a judge ruled that Johnson would not need to report to prison until he is vaccinated against COVID-19. In January 2018 HSBC agreed to pay a $101.5 million fine over the case.
., Israel's largest non-government-owned military contractor, active in numerous defence-related industries. HSBC justified its decision by claiming it "strongly supports observance of international human rights principles as they apply to business." In response, the group Palestine Solidarity Campaign (PSC) released a press release in which it "declared a victory" and quoted PSC director Ben Jamal saying the decision demonstrates "the effectiveness of
as a tactic." JewishPress.com reported that multiple sources claimed HSBC's decision was not influenced by the BDS movement but was an "investment decision."
In an editorial titled "Bad Banking", ''The Jerusalem Post'' wrote, "HSBC, if this is your final decision, you will go down on the wrong side of history. Do you understand that Israel is using Elbit technology to protect itself against Palestinian terror, and not to undermine the rights of the Palestinian people? If you are really concerned about human rights, perhaps you might consider using some of your own income to invest in the Palestinian economy, and boost cooperation between Israeli and Palestinian institutions."
between 2005 and 2007. Forbes noted the settlement was the lowest of 11 banks that settled with the Department of Justice. HSBC has said in statement that it has been improving relevant control mechanisms since the financial crisis.
, HSBC took the rare step of wading into political issues by publicly backing Beijing's controversial new
.
, signed a petition supporting the law and stated in a post on Chinese social media that HSBC "respects and supports all laws that stabilise Hong Kong's social order."
Though HSBC moved its headquarters to London in 1993, Hong Kong remains its largest market accounting for 54% of its profit, a third of its global revenue, and 50,000 local staff.
, a top Hong Kong pro-democracy activist decried the bank's position stating that HSBC's stance demonstrates "how China will use the national security law as new leverage for more political influence over foreign business community in this global city."
, the U.K. chairman of the All Parliamentary Group on Hong Kong, said HSBC made a serious error by bending to China's will regarding the security law, calling it "a colossal misjudgment" since it would be seen as a large British corporation advocating for "a fairly flagrant breach of international law" when banks rely on a rules-based system.
alleged that "the new national security law will deal the most severe blow to the rights of people in Hong Kong since the territory's transfer to China in 1997."
also commented on HSBC's stance, saying "Businesses will make their own judgment calls, but let me just put it this way – we will not sacrifice the people of Hong Kong over the altar of banker bonuses".
Since August 2020, HSBC has frozen the accounts of numerous pro-democratic organizations and activists, and their families, including
and the Good Neighbour North District Church.
In January 2021, the CEO of HSBC defended its relationship with Chinese authorities in Hong Kong and freezing of Ted Hui's account to the United Kingdom's parliamentary foreign affairs committee.
In February 2021, more than 50 members of the
called for the immediate unfreezing of funds belonging to Ted Hui and his family,
EU antitrust regulators fined HSBC 174.3 million euros for foreign exchange market rigging by exchanging sensitive information and trading plans through an online chat room dubbed "Sterling Lads".
In 2008, HSBC issued a statement confirming it had lost a disc containing details of 370,000 customers of its
business. HSBC said the disc had failed to arrive in the post between offices and it was not
. The bank was later fined over £3 million by the
for failing to exercise reasonable care with regards to data protection in connection with this and other lost customer information.
From 2009 to 2014, in breach of United States sanctions on Iran, the bank facilitated money transfers in Iran on behalf of the Chinese company
.
and cited by BBC, "billions of dollars of assets" were held by the bank for the
. Following Gaddafi's overthrow the bank declined to reveal information about the funds citing customer confidentiality.
. The bank declined to divulge its clients, citing client confidentiality, but maintains that the accusations are not accurate. The environmentalist group
has also alleged that the bank is contributing to the deforestation in Indonesia and subsequent hazardous impacts in the region by providing funds to palm oil producers for new plantations. The bank has denied these claims, citing its sustainability policy that prohibits the bank from financing projects that "damage high conservation value forest."
The bank was reported to have refused large cash withdrawals for customers without a third-party letter confirming what the money would be used for.
, the Conservative MP for Clacton, was alarmed by the policy: "All these regulations which have been imposed on banks allow enormous interpretation. It basically infantilises the customer. In a sense, your money becomes pocket money and the bank becomes your parent."
payments resulting in thousands of salaries not paid, house purchase and payment for essential home care failures.
In January 2020, HSBC agreed to pay a $2.4 million settlement for a lawsuit filed in 2015 by customers who stated they received spam phone calls from the company.
HSBC banker Ian Clarke alleged a failure of HSBC to retain or promote black and other ethnic minority staff, a lack of such people in senior positions, and insufficient policies to address these problems. HSBC did not address the specifics of Clarke's assertions and he resigned shortly thereafter.
Stuart Kirk, the bank's global head of responsible investing, was suspended in May due to his speech in which he said "There's always some nut job telling me about the end of the world." He quit his position in July, criticising the "cancel culture" in his Linkedin post, and blaming it for his suspension and resignation. In October, the company had its two advertisements banned due to being misleading about the company's activities for reducing the effects of climate change. The Advertising Standards Authority (ASA), who was behind the ban, stated that the posters omitted material information about how HSBC planned to tackle the climate change and reduce its impact.
The group announced in November 1998 that the HSBC brand and the hexagon symbol would be adopted as the unified brand in all the markets where HSBC operates, with the aim of enhancing recognition of the group and its values by customers, shareholders and staff throughout the world. The hexagon symbol was originally adopted by the Hongkong and Shanghai Banking Corporation as its logo in 1983. It was developed from the bank's house
shape. Like many other Hong Kong company flags that originated in the 19th century, and because of its founder's nationality, the design was based on the
. The logo was designed by Austrian graphic artist
.
In 2018, HSBC made minor changes to their logo. The wordmark was repositioned from left to the right, resized to be smaller, and was switched from
to a licensed custom font called Univers Next for HSBC. The logo red was made slightly darker red.
.
In the mid-2000s, HSBC switched its focus to golf, taking title sponsorship of several events such as the
, HSBC Golf Business Forum and HSBC Golf Roots (a youth development programme). HSBC was named the 'Official Banking Partner' of
, in a five-year deal announced in 2010.
In October 2010, the International Rugby Board announced that they had concluded a 5-year deal with HSBC which granted them status as the first-ever title sponsor of the
. Through the accord, HSBC is paying more than $100 million for the title naming rights to all the tournaments. HSBC opted to sub-license the naming rights to all but one of the individual tournaments while retaining its name sponsorship of the overall series and the
. The company also sponsors the
. It sponsored
tennis tournament, providing banking facilities on site and renaming the junior event as the HSBC Road to Wimbledon National 14 and Under Challenge.
HSBC's other sponsorships are mainly in the area of education, health and the environment. In November 2006, HSBC announced a $5 million partnership with
as part of Future First.