HSBC 2002 Annual Report Download - page 22

HSBC HOLDINGS PLC
Description of Business (continued)
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used at over 5,000 points of sale in Turkey.
Hong Kong
Hong Kong contributed US$3,710 million, or 38.4
per cent, of HSBC’s profit on ordinary activities
before tax in 2002 compared with US$3,883 million
in 2001.
HSBC’s principal banking subsidiaries in Hong
Kong are The Hongkong and Shanghai Banking
Corporation and Hang Seng Bank, in which HSBC
has a 62.14 per cent stake. The Hongkong and
Shanghai Banking Corporation is the largest bank
incorporated in Hong Kong and HSBC’s flagship
bank in the Asia-Pacific region. It is one of the Hong
Kong SAR’s three note-issuing banks, accounting for
more than 62 per cent by value of the Hong Kong
banknotes in circulation in 2002 and it is also the
agent bank for the issuing and handling of the Hong
Kong SAR Government’s newly launched HK$10
note. HSBC has a substantial market share and
operational network in the Hong Kong SAR,
including 199 outlets of the Hongkong and Shanghai
Banking Corporation in 159 locations, and 138 Hang
Seng Bank branches.
Both banks offer personal customers an
extensive range of financial services with the aim of
satisfying customers’ needs to grow, manage and
protect their wealth. To meet the demands of a
growing client base and to offer tailored wealth
management solutions to HSBC Premier customers,
HSBC now has 34 HSBC Premier Centres and 400
personal bankers in Hong Kong.
HSBC’s customer relationship management
processes and systems were further developed in
2002 to provide a comprehensive view of all aspects
of every customer’ s relationship with HSBC. This
has led to new business opportunities and enhanced
HSBC’s ability to offer tailored solutions to meet
individual customer needs.
Hang Seng Bank opened a further 26 Prestige
Banking Centres for affluent customers in 2002,
bringing the total to 59. Stamina Banking, offering
customers comprehensive banking, investment and
financial services and a wide variety of lifestyle
privileges, and ezLink Financial Services, catering
for the financial needs of customers commuting
between Hong Kong and the mainland of the
People’s Republic of China (‘mainland China’ ), were
also launched in 2002.
HSBC has grown to be one of the leading
distributors of retail fund products in Hong Kong. In
2002’s uncertain investment market, HSBC achieved
significant growth in the sale of unit trusts through
the promotion of 14 guaranteed/capital-secured funds
designed to meet customers’ demands to protect their
investment capital. In the low interest rate
environment, HSBC also introduced a range of
alternative deposit products to provide customers
with more investment choices. There was strong
growth in funds under management.
Hang Seng Bank also continued to widen its
investment and insurance product range to enhance
its wealth management services. The launch in 2002
of 30 retail capital-guaranteed funds was well
received and increased the total number of retail
funds in the Hang Seng Investment Series to 60. The
series of capital-guaranteed funds offered by Hang
Seng Bank is the largest in Hong Kong in terms of
number of funds.
The insurance business remains a key focus in
HSBC’s wealth management strategy in Hong Kong.
Significant growth in personal insurance was
achieved, outpacing market growth and giving
HSBC a larger market share of new business. There
was increasing use of telesales and the internet for
insurance business. Corporate insurance profitability
improved and the retirement business continued to
develop, both through new sales and the transfer to
HSBC of Pacific Century Insurance Company
Limited’s Mandatory Provident Fund (‘MPF’ )
business.
In another year of fierce competition for quality
assets and increasing consumer loan write-offs in
Hong Kong, HSBC maintained a strong
performance. Including cards issued by Hang Seng
Bank, HSBC remained the largest credit card issuer
in Hong Kong with 2.8 million cards in circulation
and led the market in cardholder spending and
outstandings. The implementation in 2001 of an
enhanced card processing system and continued
migration of work to HSBC’s Group Service Centre
in Guangzhou has enabled operational efficiency to
be further improved.
HSBC provides a comprehensive range of
banking products and services to meet the needs of
large and small businesses in Hong Kong. To meet
the needs of small and medium-sized businesses,
HSBC introduced enhanced services and products,
launching its Business Internet Banking service in