HSBC 2006 Annual Report Download - page 12

HSBC HOLDINGS PLC
Report of the Directors: Business Review (continued)
Group Chairman’s statement / Principal activities / Strategic direction
10
experience that drives the brand’s strength.
The Board
It is important to HSBC to continue to ensure that
the Board is representative of the Group's broad
international franchise and the diversity of our
businesses. As usual, there will be changes to the
make-up of the Board in 2007. As previously
announced, as part of planned succession, Simon
Robertson will become Senior Independent non-
executive Director, Rona Fairhead will become
Chairman of the Group Audit Committee and Sir
Brian Williamson will become Chairman of the
Nomination Committee at the conclusion of this
year's AGM. Raymond Ch’ien, Sharon Hintze and
Helmut Sohmen will all retire at the 2007 AGM after
many years distinguished service. I thank them all
for their counsel and guidance.
Outlook
Although growth expectations in the US are
moderating, the economic outlook elsewhere
remains encouraging as globalisation expands
market access and emerging markets grow stronger,
forcing competitive restructuring. The financial
markets are playing a major part in this realignment
by financing the infrastructure needed to deliver the
necessary energy and material resources from
producer to consumer nations, and by facilitating
trade flows. Additionally, financial markets are
providing more sophisticated tools to help personal
customers plan their long-term financial affairs,
corporates to hedge their business risks and investors
to manage their portfolio risks. The demand for
financial services, therefore, remains strong,
particularly for internationally linked services. This
plays to HSBC’s huge competitive strengths.
The most significant risks to continuing growth
currently relate to political and macro events which
are outside our control. Recognising that the effect
of such risks materialising could be immediate and
potentially severe, we remain strongly capitalised
and liquid.
The Board of HSBC Holdings plc will continue
to oversee the pursuit of the company’s goals by
executive management and to exercise rigorous
stewardship of your company.
Our focus as we enter 2007 is resolutely on
continuing to play to our strengths of linking
emerging and developed markets and building
comparative advantage by utilising our scale and our
local and international reach. We continue to see
opportunities to deploy capital profitably to the long-
term advantage of shareholders and are committed to
so doing.
S K Green, Group Chairman
5 March 2007