Professional Documents
Culture Documents
ON
SUBMITTED TO:
PROF. UDDEEPAN CHATTERJEE
SUBMITTED BY:
HAMAD SIKANDAR
GOVINDA KHANDELWAL
HONEY MALVIYA
JITENDRA KANADE
(GROUP 4, SECTION-B)
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CONTENTS
DEFINITION:
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Transacting business with a bank; depositing or withdrawing funds or
requesting a loan etc
A banker or bank is a financial institution that acts as a payment agent for
customers, and borrows and lends money. ...
A banker or bank is a financial institution whose primary activity is to act as a
payment agent for customers and to borrow and lend money.
HISTORY OF BANKING:
The first modern bank was founded in Italy in Genoa in 1406, its name was Bank of
St. George. Banks have influenced economies and politics for centuries. Historically,
the primary purpose of a bank was to provide loans to trading companies. Banks
provided funds to allow businesses to purchase inventory, and collected those funds
back with interest when the goods were sold. For centuries, the banking industry
only dealt with businesses, not consumers. Banking services have expanded to
include services directed at individuals, and risk in these much smaller transactions
is pooled.
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Area served Worldwide
Stephen Green, Group Chairman
Key people Michael Geoghegan, Group Chief Executive
The HSBC Group is named after its Parent company.The Hongkong and
Shanghai Banking Corporation Limited, which was established in 1865 to finance the
growing trade between China and Europe. HSBC Bank is the largest bank in Hong
Kong and second largest group in the world after Citicorp. Before moving its
headquarter to London in 1990, it was headquartered in Hong Kong Headquartered
in London, HSBC is one of the largest banking and financial services organisations
in the world. HSBC's international network comprises around 9,500 offices in 85
countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle
East and Africa.
With listings on the London, Hong Kong, New York, Paris and Bermuda stock
exchanges, shares in HSBC Holdings plc are held by around 200,000 shareholders
in some 100 countries and territories. The shares are traded on the New York Stock
Exchange in the form of American Depositary Receipts.
PRINCIPLE ACTIVITIES:
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The group provides a comprehensive range of banking and related financial
services
The group divides its activities into geographical segments: UK, Continental
Europe and Rest of the World
The group also divides its activities into the following business segments: UK
Personal Financial Services; UK Commercial Banking; UK Global Banking and
Markets; International Banking; HSBC France; Private Banking.
2006 2007
PARTICULARS £m £m
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company
SEGMENT PERFORMANCE:
The consolidated profit for the year attributable to the shareholders of the bank was
£3,227 million. First and second interim dividends of £840 million and £825 million
were paid on the ordinary share capital during the year. The Directors have
recommended the payment of an interim dividend of £1,000 million on the ordinary
share capital which has not been included as a liability, having been approved after
31 December 2007.
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PAST PERFORMANCE
With listings on the London, Hong Kong, New York, Paris and Bermuda stock
exchanges, shares in HSBC Holdings plc are held by around 200,000 shareholders
in some 100 countries and territories. The shares are traded on the New York Stock
Exchange in the form of American Depositary Receipts.
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internet banking service has been improved and is now the largest, most functionally
rich service of its kind in the UK according to independent surveys. During 2007,
over 328,000 priority payments have been sent through the platform
Business Direct, HSBC's direct commercial banking proposition, has now attracted
66,000 customers since its launch in September 2006, of which 63 per cent are new
customers. Of new small and micro customers, 22 per cent now choose to bank with
HSBC through the direct proposition and customers are now able to apply and obtain
approval for new accounts online without the need for telephone or branch
intervention.
Net interest income decreased due to increased cost of funding in the rail and
structured finance business and lower interest income in balance sheet
management, partly offset by the benefit of higher deposit balances and related
margins, due to interest rate increases.
Higher net fee income was driven by structured finance deals and increased
advisory and equity capital markets revenues due to increased market activity.
Income from trading activities fell due to losses reported in credit and structured
credit products. This was partly offset by strong growth in foreign exchange income
driven by market volatility and a weakening US dollar. Strong performance in equities
was principally due to growth in income from core products.
FINANCIAL HIGHLIGHTS
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Customer accounts and deposits by
317,055 265,863 239,673
banks.
STRATEGY:
HSBC’s strategy reflects its position as ‘The World’s Local Bank’ and is focused on
delivering superior growth and earnings over time by building on the Group’s
heritage, skills and investment. In particular, the group aims to leverage the HSBC
brand and network to reach new customers and offer more services to existing
customers, to maximize efficiency by taking advantage of local, regional and global
economies of scale and to ensure staff are engaged by aligning objectives and
incentives.
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products, sells them properly and keeps them sold, it will be the Best
Place To Bank.
EXPANSION:
During 2007, significant investment has been made in Central and Eastern Europe,
in IT, premises and staff recruitment in preparation for the opening of a number of
branches in 2008 in Poland, the Czech Republic and Slovakia.
New business initiatives are underway in Armenia and Kazakhstan to expand in the
personal and commercial customers sectors.
Following the granting of a retail banking licence from the Central Bank of Russia,
HSBC’s local banking subsidiary in Russia is well advanced in its plans to develop a
retail branch network, offering personal and commercial banking services in addition
to its current Global Banking and Markets services.
During the second half of the year, the National Bank of Georgia granted a banking
licence to HSBC Bank Georgia. The bank will open for business in 2008.
HSBC France offers a wide range of retail, commercial, asset management and
insurance products to individuals, companies and institutional customers through a
network of banks in France
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FUTURE OF THE SECTOR
Ongoing uncertainty in the markets might lead to a slow down in growth. While the
increased customer base in private and corporate banking should be a solid
foundation to grow net interest income and fee business, a recurrence of the high
trading income from retail equity derivative products greatly depends on the
conditions of the markets. In addition, the demand of institutional clients for
structured products may weaken compared to 2007.
FUTURE CHALLENGES:
►Competition
►Customer
►Globalization
►Shrinking
►Retention
►Margin
SUGGESTIONS:
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►Strong In-house research & market Intelligence.
The growth of the retail financial services sector has been a key development on the
market front. banks (both public and private) will not only be keen to tap the domestic
market but also to compete in the global market place. New foreign banks will be
equally keen to gain a foothold in the Prospective markets.
CONCLUSION:
What will the future of banking look like? Will the reform in banking face the same
fate as in power and telecom? It is increasingly evident that the economies offer
opportunities but no security! Therefore, the future will belong to those who develop
good internal controls, checks and balances and a sound market strategy. Business
Growth, Cost Efficiency and Evolution are therefore regarded as key drivers which
will have to be addressed.
BIBLIOGRAPHY
1) http://en.wikipedia.org/wiki/Banker
2) http://answers.yahoo.com,
3) http://www.echeat.com/essay.php?t=3184
4) http://www.hsbc.co.in/
5) http://wordnet.princeton.edu,.wikipedia.com
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