HSBC 2002 Annual Report Download - page 14

HSBC HOLDINGS PLC
Description of Business (continued)
12
Lines of Business
Profit on ordinary activities before tax (cash
basis) by Line of Business
Year ended 31 December 2002
Personal Fin Services Commercial Banking
Corp, Inv Bkg & Mkts Private Banking
Other
Total assets* by Line of Business
Year ended 31 December 2002
%
Corp, Invest. Bkg and Mkts 52.6
Personal Fin Services 22.9
Commercial Banking 15.1
Private Banking 6.5
Other 2.9
* excludes Hong Kong SAR Government certificates of
indebtedness
Personal Financial Services
The Personal Financial Services segment covers
individual customers, including those who are self-
employed. Internationally oriented high net worth
individuals and their families who choose the
differentiated services offered within Private
Banking are not included in this segment. The
personal customer segment comprises some 36
million customers worldwide. Within this figure,
more than 630,000 are classified as HSBC Premier
customers and these represent the most valuable
personal customer segment.
Through its extensive branch network, HSBC
provides a wide range of banking and related
financial services to meet the needs of its personal
customers. HSBC employees use Customer
Relationship Management (CRM) systems and
processes to sell appropriate products and services to
fulfil customer needs when they arise.
Principal products and services for personal
customers include current, cheque and savings
accounts, loans and home finance, cards, payments,
insurance and investment services, including
securities trading. Services are increasingly delivered
via self service terminals, the telephone and the
internet. A comprehensive financial planning service,
covering customers’ investment, retirement and
personal and asset protection needs is offered
through specialist financial planning managers.
HSBC services its most valuable personal
customers through its HSBC Premier service, now
available in 29 countries and territories. The key
components of the HSBC Premier service, in
addition to the standard range of personal banking
products and services, are:
• dedicated relationship management,
• over 200 HSBC Premier centres worldwide,
• 24-hour priority telephone access, and
• 24-hour global travel assistance.
As at 31 December 2002, HSBC had total
personal customer deposits of US$258 billion and
total personal customer loans and advances, net of
suspended interest and provisions for bad and
doubtful debts, of US$144 billion.
HSBC sells and distributes a range of insurance
products, including life, loan protection and health
protection, as well as pensions, investments and
savings, principally through its locally based banking
subsidiaries. HSBC is a broker for life and pensions
insurance, general insurance and reinsurance and an
underwriter for property, casualty, life, pensions and
health insurance. HSBC sees continuing
opportunities to deliver personal insurance products
to its personal customer base utilising its branch
network, local sales forces, direct telephone
capabilities and internet delivery channels.
Commercial Banking
The Commercial Banking sector covers a wide and
diverse range of enterprises from sole proprietors,
partnerships, clubs and associations to incorporated
businesses and publicly quoted companies.
HSBC is one of the world’s leading banks in the
provision of financial services and products with
over 1.8 million small to medium-sized businesses.
3,543
3,034
3,717
420
-201
-1,000
0
1,000
2,000
3,000
4,000