The Hongkong & Shanghai Banking Corporation
Hongkong & Shanghai Banking Corporation, HSBC’s Hong Kong subsidiary, is the judges’ choice for the award again this year after outperforming its rivals against the backdrop of a global economic slowdown and weak financial markets.
Although the bank’s net profit was down marginally in 2002, for the third year running it achieved an ROE of about 30%. At the same time, its cost-to-income ratio remained low, at 38.6%, while it posted modest gains in assets and Tier 1 capital. Figures supplied by other Hong Kong banks, which were hurt more by the adverse conditions, could not compare with these.
The bank’s resilience last year has everything to do with its sheer dominance of almost every aspect of Hong Kong banking. For example, no less than 70% of the adult population and half of all small and medium size enterprises maintain an account with HSBC. And the bank is either the leader or close to it in private, commercial and investment banking, insurance and asset management.
HSBC is the biggest provider of capital markets services. These include foreign exchange, derivatives, currency/interest rate swaps and options as well bond issuance and syndicated loans.
“Despite the challenging conditions in Hong Kong, we continue to build on the fundamental strengths of our business: clear customer focus, prudent management and operating efficiency and providing products and services that meet ever-changing demands,” said David Eldon, chairman of the corporation.
