HSBC ANALYSIS

HSBC Analysis



HSBC Analysis

Introduction

HSBC Holdings (HSBC) is a banking and financial services organization which provides investment banking, commercial banking and wealth management services to its clients. The group primarily operates in Europe and Hong Kong. It is headquartered in London, UK and employs about 295,061 people. The group recorded revenues of $80,014 million in the financial year ended December 2010 (FY2010), an increase of 1.8% over FY2009. The operating profit of the group was $16,520 million during FY2010, compared to $5,298 million in FY2009. The net profit was $13,159 million during FY2010, compared to $5,834 million in FY2009.

Background

HSBC is a banking and financial services organization that provides investment banking, commercial banking and wealth management services. The group's international network comprises over 9,500 offices in 87 countries in the following five regions: Europe; Hong Kong; Rest of Asia-Pacific including the Middle East and Africa; North America and Latin America.

With assets of about $2,454.7 billion at 31 December 2010, HSBC is one of the world's largest banking and financial services organizations (Bloomberg News, 2009, 1).

HSBC provides financial services to more than 100 million customers through four customer groups and global businesses: personal financial services (including consumer finance), commercial banking, global banking and markets and private banking. Products provided by the segment include current and savings accounts, mortgages and personal loans, credit cards, and local and international payment services.

Macro environmental analysis

Political

HSBC Banking has been protected by the regulations and policies formulated by different government in the countries where they are operating. The company has been able to adhere to the policies given by each government to make sure that the company will be able to conduct business operations successfully and effectively. HSBC global asset management offers asset management products and services for institutional investors, intermediaries, and individual investors and their advisers. Furthermore, the company also formulates their own protection strategies against any governmental restrictions and limitations.

Economic

Being the world's largest and competitive industry in terms of banking and finance, HSBC, is said to have a stable and successful economic stability. In spite of many dangers that HSBC encounter in different parts of the world, the management of HSBC sees to it that they would be able to surpass such struggles and strives to have a better economic condition.

As a consequence of this strong capital generation, together with greater clarity on the direction of regulatory reform of capital requirements and an improving economic backdrop in the developed world - particularly in the United States - the Board has approved increases in both the final dividend payment in respect of 2010 and the planned quarterly dividends for 2011.

Socio Cultural

HSBC is being affected by the situation of the society in which they are operating. Along with this, HSBC tries harder to make sure that each society is given equal chances to take advantage of the resources given by the organisation. The company adheres to having good reputation and relations in the society that they ...