HSBC 2005 Annual Report Download - page 11

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will become increasingly burdensome. The challenge
to society of managing the equitable distribution of
wealth created between competing generations may
well become one of the most pressing of the next
decade.
In this environment HSBC, with its unique
international footprint, is determined to continue to
deliver profitable growth and value to its various
constituencies. Success ensures that the Group can
offer good employment prospects to an ever more
diverse workforce. It means that HSBC can afford to
continue to invest in expanding the platforms by
which it delivers services to its customers. It enables
the Group to contribute to the savings and retirement
needs of those who invest in HSBC directly, or
indirectly through pension plans and investment
funds.
Building on its achievements, HSBC’s priority
for the rest of 2006 is to continue to implement its
Managing for Growth strategy. It will achieve this by
being distinctive, reinforcing its brand values of trust
and integrity in all its dealings with customers. The
Group will make itself even more relevant by
broadening the product, channel and geographical
coverage it offers. Furthermore, HSBC will ensure
that the scale and complexity needed to compete
successfully will be seamless from the perspective of
its customers and manageable from that of its
employees.
HSBC’s businesses in Asia, Turkey, Mexico,
Brazil and the Middle East see strong opportunities
for growth on the back of investments already made.
The Group also sees opportunities to strengthen its
position in its franchises in the UK, Hong Kong,
North America and France. HSBC believes there is
growing momentum from the development of its
new business streams within Corporate, Investment
Banking and Markets businesses. Overall, HSBC is
well positioned for further growth.
Strategy
At the end of 2003, HSBC launched ‘Managing for
Growth’, a strategic plan that provides HSBC with a
blueprint for growth and development during the
period to 2008. The strategy is evolutionary, not
revolutionary. It builds on HSBC’s strengths and it
addresses the areas where further improvement is
considered both desirable and attainable.
Management’s vision for the Group remains
consistent: HSBC aims to be the world’s leading
financial services company. In this context, ‘leading’
means preferred, admired and dynamic, and being
recognised for giving the customer a fair deal. HSBC
will strive to secure and maintain a leading position
within each of its customer groups in selected
markets.
HSBC will concentrate on growing earnings
over the long term at a rate which will place it
favourably when compared with its peer group. It
will also focus on investing in its delivery platforms,
its technology, its people and its brand to support the
future value of HSBC as reflected in its comparative
stock market rating and TSR. HSBC remains
committed to benchmarking its performance both
absolutely and by comparison with a peer group. For
full details of the peer group benchmark, see page
220.
HSBC’s core values are integral to its strategy,
and communicating them to customers, shareholders
and employees is intrinsic to the plan. These values
comprise an emphasis on long-term, ethical client
relationships; high productivity through teamwork; a
confident and ambitious sense of excellence; being
international in outlook and character; prudence;
creativity and customer-focused marketing.
The plan also reaffirms HSBC’s recognition of
its corporate social responsibility (‘CSR’). HSBC
has always aspired to the highest standards of
conduct, recognises its wider obligations to society
and believes there is a strong link between CSR,
long-term success and value creation. Moreover,
changing public expectations across a wide spectrum
of social, ethical and environmental issues require
continuing attention to this area. The strategy
therefore calls for a renewed emphasis on CSR and
for increased external communication of the Group’s
CSR policies and performance, particularly on
education and the environment, which will remain
the principal beneficiaries of HSBC’s philanthropic
activities.
HSBC’s growth ambitions centre on its four
customer groups: Personal Financial Services;
Commercial Banking; Corporate, Investment
Banking and Markets; and Private Banking; and
specific strategies are being implemented for each of
them. HSBC believes that by organising its internal
and external reporting around customer groups, it
reinforces to all its employees the Group’s customer
focus.
Within Personal Financial Services, the
increasing integration, skills sharing and transfer of
technology with the consumer finance business has
augmented and enhanced existing activities. In
addition, the introduction of skills and practices from
the world’s leading retailing businesses is shaping
HSBC’s competitive positioning.