HSBC
Following the strategic purchases of Household International in the US and Bital in Mexico, HSBC has continued to expand its global franchise in the past year, with record results in its global markets business, acquisitions in India, Bermuda and Brazil and a recent purchase of a 19.9% stake in Bank of Communications, China’s fifth largest bank. In 2003, group pre-tax profits were up 37% to $14.4bn and the group again produced record pre-tax profits in the first half of 2004 of $9.4bn, as all businesses generated solid earnings. The integration of Household has produced better-than-expected growth and profits and the US business is likely to grow in importance, while HSBC believes that China, India, Brazil and Mexico will become increasingly important to the global economy. The $1.3bn acquisition of Bank of Bermuda in February this year strengthens the private banking and trustee and payment businesses, following the acquisition of Republic Bank of New York and Safra Republic Holdings in 1999. In a recent UK development, HSBC is partnering with retailer Marks & Spencer Group and acquiring 100% of Marks & Spencer’s retail Financial Services. With strong earnings growth across the globe, combined with new strategic acquisitions and expanded investment banking activities, HSBC is deservedly global bank of the year for the third year in a row. HSBC group chairman Sir John Bond says: “We are honoured to have won global bank of the year for the third year running. HSBC has continued to make good progress during the last 12 months in harnessing the strengths of our businesses across all geographical regions and all our customer groups. The award recognises this and is a measure of the talents and dedication of my colleagues throughout HSBC. It will encourage us to redouble our efforts to serve our shareholders and our customers around the world.”
