HSBC 2012 Annual Report Download - page 21

19
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
branches and the repositioning of our activities
towards international businesses.
• CMB is now focused on five hubs contributing
over 50% of US corporate imports and exports,
including the West Coast Southeast and
Midwest.
• Global Banking serves top-tier multinationals
and Global Markets (New York) provides a hub
for international clients across America and
globally, providing US dollar funding.
• RBWM and GPB target internationally mobile
clients in large metropolitan centres on the West
and East coasts.
Global Private Banking
The private banking industry faces challenges
from stricter regulatory requirements, particularly
to its international banking model, and increasing
competition to capture new wealth inflows. To meet
these challenges and better serve the needs of our
clients, GPB is repositioning its business to focus
on priority markets and improve its operational
standards in the following ways:
• operational risk and compliance – GPB will
adhere to the highest standards in the industry,
and will continue to strengthen its compliance
and risk framework, focusing on global
standards and tax transparency;
• integrated operating model – GPB has
implemented a new global operating model
that will provide better integration and
coordination between geographical regions,
and it will complete the roll-out of improved
data security and compliance governance,
systems and processes;
• integration with the Group – GPB will intensify
collaboration with CMB to access wealth
created by entrepreneurs who already bank
with HSBC on the business side. GPB will
also contribute to a seamless Group wealth
proposition for personal customers; and
• capturing growth – GPB will focus investment
on the most attractive developed and faster-
growing wealth markets where it can build
access to well established client franchises
and strong local and international product
capabilities.
Growing HSBC
We continue to position HSBC for growth. We also
continue to benefit from the closer coordination and
collaboration among our four global businesses to
capture significant revenue opportunities utilising,
in particular, CMB’s potential for increasing referrals
and cross-selling with GB&M and GPB.
Faster-growing regions20 as a share of Group data
US$6bn
41pp
US$9bn
16pp
US$151bn
15pp
US$190bn
6pp
c.(12,545) FTE
(8pp)
PBT
Revenue
21
Gross loans
and advances
to customers
Deposits from
customers
Headcount
64%
39%
24%
41%
57%
2007 2012
2007
–
2012
difference
percentage
points (pp)
100% 100%
Faster growing Developed
55%
39%
47%
65%
105%
For footnotes, see page 120.
We will actively deploy capital in our home
and priority growth markets (see ‘HSBC’s market
structure’ on page 15), access faster-growing markets
and all major trade corridors and capture growth
opportunities in trade finance as competitors
deleverage.
Our aim in executing our strategy is to be
regarded as the world’s leading international bank.
We have defined financial targets to achieve a return
on equity of between 12% and 15% with a core tier 1
ratio of between 9.5% and 10.5%, and achieve a cost
efficiency ratio of between 48% and 52%. We have
also defined Key Performance Indicators to monitor
the outcomes of actions across the three areas of
capital deployment, cost efficiency and growth
(see page 22).
Risk
As a provider of banking and financial
services, risk is at the core of our day-to-day
activities.
The chart below is designed to provide a high level
guide to how HSBC’s business activities are reflected
in our risk measures and in our balance sheet.
The third party assets and liabilities shown
provide a guide to the proportion of the Group’s
balance sheet which is contributed by each of them.
In addition, we have used the regulatory RWAs to
illustrate the relative size of the risks each of them
incur.