HSBC 2002 Annual Report Download - page 10

HSBC HOLDINGS PLC
Description of Business
8
Introduction
HSBC is one of the largest banking and financial
services organisations in the world, with a market
capitalisation of US$105 billion at 31 December
2002. At the end of 2002, HSBC had total assets of
US$759 billion and shareholders’ equity of US$52
billion. For the year ended 31 December 2002,
HSBC’s operating profit was US$9 billion on
revenues of US$27 billion. HSBC is a strongly
capitalised banking group with a total capital ratio of
13.3 per cent and a tier 1 capital ratio of 9.0 per cent
as at 31 December 2002.
Headquartered in London, HSBC operates
through long-established businesses in five regions:
Europe; Hong Kong; the rest of Asia-Pacific,
including the Middle East and Africa; North
America; and South America. Within each of these
geographical regions, the principal businesses
operate essentially as domestic banks and typically
have a large retail deposit base, together with strong
liquidity and capital ratios, and provide services to
personal, commercial and large corporate and
institutional customers. By using HSBC’s extensive
technological links, businesses are able to access its
wide range of products and services and adapt them
to local customer needs. In addition, in certain key
locations - London, Hong Kong, New York, Geneva,
Paris and Düsseldorf - HSBC has significant
investment and/or private banking operations which,
together with its commercial banks, enable HSBC to
service the requirements of its high net worth
personal, corporate and institutional customers.
Through its international network of over 8,000
offices in 80 countries and territories, HSBC
provides a comprehensive range of financial services
to personal, commercial, corporate, institutional and
investment, and private banking clients. The
establishment of HSBC as a uniform, international
brand has ensured that the Group’s corporate symbol
has become an increasingly familiar sight across the
world. HSBC’s largest and best-known subsidiaries
and their primary areas of operation are:
• The Hongkong and
Shanghai Banking
Corporation Limited
(‘The Hongkong and
Shanghai Banking
Corporation’ )
Hong Kong SAR, with
an extensive network
throughout Asia-
Pacific.
• Hang Seng Bank
Limited (‘Hang Seng
Bank’ )
Hong Kong SAR
• HSBC Bank plc United Kingdom
• CCF S.A. (‘CCF’ ) France
• HSBC Bank USA New York State in the
United States
• HSBC Bank Brasil
S.A.-Banco Múltiplo
(‘HSBC Bank
Brasil’ )
Brazil
• HSBC Private
Banking Holdings
(Suisse) S.A.
(‘HSBC Private
Banking Holdings’ )
Switzerland, Hong
Kong SAR, Monaco,
Luxembourg, United
Kingdom, Singapore
and the Channel
Islands.
• Grupo Financiero
Bital S.A. de C.V.
(‘GFBital’ )
Mexico
Management and resources
HSBC recognises that the substantial customer and
asset base of its banking operations reflects years of
trust and goodwill. Through its many years of
operation, HSBC has developed a reputation for
placing great value on long-term relationships with
its clients and on observing the principles of sound
and conservative banking. HSBC organises and
delivers its banking products and services in a way
that aims to retain local authority while capitalising
on the advantages that flow from being an
international organisation.
HSBC believes that this combination of
centralisation and local responsibility permits it to
remain responsive to local needs while providing
customers with access to the services and strength of
a worldwide financial institution.
HSBC allocates resources, including capital,
management time, human resources and information
technology, according to a range of factors, such as
size and complexity of the operation, growth