HSBC 2001 Annual Report Download - page 17

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CCF provides asset management services
primarily through four full-service fund management
firms which serve institutional clients, as well as
retail networks, with proprietary or non-proprietary
products. CCF is particularly strong in providing
equity and diversified products and in corporate
savings plans.
CCF offers a wide range of insurance products,
including comprehensive health insurance, personal
property casualty insurance and, through Erisa, its
partnership with Swiss Life, homeowners’ insurance.
CCF has grown its private banking business both
organically and through the selective acquisition of a
number of specialist institutions, including Banque
du Louvre and Banque Eurofin in Paris and Banque
Dewaay in Brussels.
At the end of 2001, CCF’s funds under
management were US$52 billion.
HSBC Private Banking Holdings (Suisse) S.A.
In December 2000, as part of the strategic
restructuring of HSBC’s private banking operations,
a new holding company, HSBC Private Banking
Holdings (Suisse) S.A., was formed in Switzerland.
The reorganisation of HSBC’s existing international
private banking operations continued to be a
principal focus of activity during 2001 in order to
provide a stable platform to market high quality
services and products and to enable cost savings to
be effected through a rationalisation of operations.
The integration proceeded successfully without loss
of clients, assets or personnel in the face of intense
market competition for both clients and employees.
At 31 December 2001, subsidiary banks of
HSBC Republic Suisse were located in Switzerland,
Monaco, Guernsey, Hong Kong, Luxembourg and
Nassau and, together with their respective branches
in Hong Kong, Singapore and Nassau, represented
some 73 per cent of the international HSBC Republic
business. HSBC Republic is the principal
international private banking division of HSBC, with
operations in 50 locations in the Americas, Asia,
Europe and the Middle East, and with funds under
management exceeding US$150 billion at 31
December 2001.
Client services include deposits and funds
transfer; tax and trustee structures; asset and trust
management; mutual funds; currency and securities
transactions; lending; letters of credit; guarantees and
other extensions of credit on a collateralised basis.
HSBC Republic continued to build on its global
strategy with strategic imperatives closely echoing
HSBC’s client-focused approach. HSBC Republic’s
client base requires a highly differentiated service,
provided through a combination of geographical
presence and specialised bankers. HSBC Republic,
working in collaboration with other members of
HSBC, is able to provide its clients with not only
private banking, trust and wealth management
services, but a comprehensive range of financial
services, including corporate banking, investment
banking and insurance. Global industry practices,
such as diamonds and jewellery and sports and
media, have been established to channel the delivery
of services to these specialised private banking
client sectors.
Key achievements in 2001 include the
establishment of a global investment fund
management process (advisory and discretionary), a
private banking treasury in Asia and in Europe,
distinctive alternative investment fund management
capabilities (including the successful US$180 million
launch of a listed fund of hedge funds HSBC Global
Absolute Limited), and an international credit
function to support lending for HSBC’s distinctive
clients. The international tax and trustee business has
been strengthened. In parallel, key functional
capabilities have been reinforced, particularly those
of Operations, Human Resources and Information
Technology.
Working with HSBC Asset Management,
Treasury and Insurance, HSBC Republic has sought
shared initiatives for the benefit of clients. Most
importantly, these have included structured
investment products and tax effective life insurance
products with an international trust component.
Turkey
Demirbank TAS was acquired from the Turkish
Banking Regulator in October 2001 and then merged
with HSBC Bank A.S. The purchase included the
acquisition of Demir Yatirim, Demirbank’ s fund
management and stockbroking subsidiary. The
combined business, operating under the HSBC name,
has a network of 168 branches and offices in 38
cities providing personal, corporate, treasury, capital
markets, stockbroking, fund management and
investment banking services across the Turkish
market, through a multi-channel delivery system
including the internet, ATMs and call centres.