HSBC
Despite difficult market conditions worldwide, especially in Asia, HSBC has continued to show the depth and resilience of its long-established position in the region by maintaining strong pre-tax profits in Hong Kong and the rest of Asia-Pacific and by making some key acquisitions. In 2002, profits from the overall region rose marginally to $5bn and this trend continued, with pre-tax profits reaching $2.6bn in the first half this year.
In 2002, Asia-Pacific accounted for 48% of HSBC’s group profits and 24.8% return on average capital. This year, following the inclusion of revenues from US acquisition Household, HSBC’s geographic balance of revenues has been split more evenly between Asia-Pacific, Europe and the Americas, with Asia-Pacific slipping to 38%.
Although the full economic impact of the SARS epidemic is uncertain, HSBC has been able to capitalise on its leading position in Asia-Pacific in a variety of areas. For example, sales of capital-protected investment funds in the region grew by 25% to $3.5bn this year. The bank has also made further inroads in China. Following its purchase of an 8% stake in Bank of Shanghai in 2001, it bought a strategic 10% interest in China’s second largest life assurer, Ping An, for $600m. And earlier this year in Singapore it completed the acquisition of Keppel Insurance for $88m.
The bank has continued to expand in key growth countries in the region, such as India, and as well as winning The Banker’s country award in Hong Kong, it also won in the Philippines and had a good result in a number of other countries.
