HSBC 2001 Annual Report Download - page 12

HSBC HOLDINGS PLC
Description of Business (continued)
10
Argentina, in two stages, completing the purchase in
1997. In 2000, HSBC Investment Bank Brasil,
consisting of the former operations of Banco CCF
Brasil S.A., was integrated under HSBC Bank Brasil
management following the acquisition of CCF.
In December 1999, HSBC acquired Republic
New York Corporation (‘RNYC’ ), subsequently
merged with HSBC USA Inc., and Safra Republic
Holdings S.A. (‘SRH’ ). Then in August 2000, the
acquisition of Chase Manhattan Bank’s branch
operations in Panama was completed followed by
HSBC Bank plc’s transfer of ownership of its
existing Panama business to HSBC Bank USA.
As a result of these acquisitions, HSBC has
grown its market position substantially. For example,
HSBC is now the third-largest bank operating in
New York State and is the largest lender to
corporations in Panama and the Colon Free Zone.
To expand its base in the euro zone, in October
2000, HSBC completed its acquisition of 99.98 per
cent of the issued share capital of CCF, a major
French banking group, with businesses in personal,
corporate and investment banking. The acquisition of
CCF represented a unique opportunity for HSBC to
acquire a well-managed, fast growing French bank
and to establish a significant base in continental
Europe while serving HSBC’ s strategic objectives by
significantly increasing its personal wealth
management business and by enhancing its corporate
and investment banking capabilities.
During 2000, HSBC increased its stake in
Egyptian British Bank S.A.E. from 40 per cent to 90
per cent and subsequently changed its name to
HSBC Bank Egypt S.A.E in January 2001. The stake
was further increased to 94.5 per cent in December
2001.
In December 2000, HSBC completed the
acquisition of PCIB Savings Bank, which HSBC has
renamed HSBC Savings Bank (Philippines) Inc. The
bank complements HSBC’s existing operations in the
Philippines and focuses on providing financial
services to personal and middle-market customers
through its 16 branches in the metro Manila area.
In March 2001 HSBC, through CCF, completed
the acquisition of 89.6 per cent of Banque Hervet
from the French Finance Ministry. An additional 8.3
per cent was acquired in July 2001. Banque Hervet is
a Paris-based specialist commercial and consumer
bank with 87 branches and over 100,000 customers.
In May 2001, the Merrill Lynch HSBC joint
venture opened its full broking business for
individuals in the United Kingdom.
In May 2001, HSBC reached agreement to sell
its 93.3 per cent stake in Crédit International
d’ Egypte (‘CIE’ ), an Egyptian commercial bank
primarily engaged in corporate banking acquired as
part of the acquisition of CCF, to Crédit Agricole
Indosuez and the El Mansour and El Maghraby
groups.
In June 2001, Charterhouse Development
Capital Holdings Limited (‘CDC’ ), the management
company for the Charterhouse venture capital funds,
was sold to the existing CDC management team.
In August 2001, HSBC completed its acquisition
of a 97 per cent interest in China Securities
Investment Trust Corporation (‘CSIT’ ). CSIT is
Taiwan’ s leading asset management company with
approximately US$2.6 billion of assets under
management and about 88,000 high net-worth retail
and institutional clients.
In October 2001, HSBC acquired Demirbank
TAS (‘Demirbank’ ) from the Savings Deposit
Insurance Fund in Turkey. The entity was merged
with HSBC’s existing Turkish operation, HSBC
Bank AS, in December 2001 creating a combined
entity with a balance sheet of US$2.35 billion and
capital of US$250 million.
In November 2001, HSBC acquired the NRMA
Building Society Limited from NRMA Insurance
Group Limited. The acquisition included A$1.8
billion (US$923 million) of residential mortgages
and approximately A$1 billion (US$531 million) in
customer deposits. In addition, the business includes
some 70,000 VISA credit card accounts as well as
personal and car loan customers.
Also in November 2001, HSBC Holdings plc
signed a three-year contract for American Express to
supply travellers’ cheques through HSBC branches,
making this contract the largest global agreement of
its type for the American Express Travellers Cheque
Group. American Express will also be responsible
for the delivery of foreign exchange currency to all
HSBC branches in the UK and also to HSBC Bank
plc’s UK subsidiary, First Direct. Customers will be
able to encash their American Express travellers’
cheques, bought from HSBC, at all HSBC branches
worldwide free of any commission charge.