HSBC Holding is a banking and financial services organization headquartered in London, the UK.
The group provides services in retail banking, commercial banking, wealth management and private banking to its clients. It has an international network of nearly 6100 offices spread across five regions North America, Latin America, Europe, Asia and Middle East and North Africa (MENA).
The major product divisions are Retail banking and wealth management, Global Banking and Markets, Global Private banking and Commercial banking. The Retail Banking and wealth management offers products in wealth management and personal banking needs of individual customers. The global banking and markets segment provide financial solutions to major corporations, governments and institutional customers. Commercial banking segment offers products and services to serve its commercial customers such as small and medium enterprises and corporates. Global Private Banking division provides a range of services to high net worth individuals. The other divisions in the organization handle HSBC’s unallocated investment activities, certain property activities and financial operations of the company. The UK is group’s largest geographic market, accounting for nearly 23.5% of the revenues. The huge international network and global scale helps the company to capture benefits from macroeconomic trends.
HSBC has strong capital and liquidity position that provides stability to its operations in rough times and provides ample scope for business expansion. The compliance cost has increased drastically in last few years as it was caught up in money laundering scams which led to heavy penalties being imposed. This has slightly affected the financial performance of the company. The company has increased its investments in emerging markets Asia-Pacific and MENA to drive the future growth with the only threat being the increasing regulatory costs in these markets.