In the context of economic growth of just 4.2% in 2004, HSBC Mauritius’ 103% leap in profits is impressive. What stood out for the judges was the aggressive way in which HSBC was reshaping its business and customer offering, across a broad range of innovative products and services, in the face of gradual but steady erosion of the island’s economic comparative advantages, particularly in the areas of garment manufacture and (less so) tourism.
HSBC was the first bank to set up an offshore operation and is today the leading offshore bank in Mauritius, with total assets of $2.4bn at the end of 2004. Though with 24% market share of deposits and a 17% share of advances, HSBC is far more than just an offshore bank.
“HSBC in Mauritius has been able to make effective use of its strong international brand, network and product and service capabilities to drive growth in selected areas and to facilitate an ongoing repositioning of the business in response to changing market dynamics,” says CEO Phillip Dawe.
“Increased focus on the development of institutional, offshore and personal wealth management services has enabled us to successfully withstand pressure on some parts of the business resulting from structural changes taking place in the island’s economy. And we shall continue to modify our product and service proposition to meet the requirements of our major customer groups,” he says.
