Group history

2008

2008 was an exceptionally challenging year for HSBC.

The unprecedented turbulence in the financial markets and the risk of a worldwide downturn brought a range of government and central bank interventions across the globe. HSBC, whilst welcoming any support for the banking system, remained one of the most strongly capitalised and liquid banks in the world. In December HSBC announced a £750 million capital injection for its UK subsidiary from its own resources and also created a new $5 billion global fund for small and medium sized businesses to ensure that they have access to appropriate credit in the current economic climate.

Even in this difficult climate, HSBC has continued to consider opportunities for growth, especially in emerging markets. In March, HSBC entered the Korean Insurance Market; and in August it became the 1st foreign bank to hold a 20% interest in a domestic Vietnamese bank when it increased its stake in Techcombank. HSBC built on its considerable operations in Indonesia with the purchase of a major stake in Bank Ekonomi in October which doubled its network to over 190 outlets in the country. HSBC also strengthened and deepened its presence in Central and Eastern Europe – including opening new offices in Georgia and Kazakhstan, and expanding the range of services provided in Poland, the Czech Republic and Austria.

HSBC continues to be committed to reducing the impact of its operations on the environment. In June solar panels were fitted to the roof of HSBC’s head office in Canary Wharf  as part of the bank's US$90 million Global Environmental Efficiency Programme, launched in 2007, to introduce renewable energy technology, water and waste reduction programmes and employee participation across its 10,000 offices around the world. In December HSBC formally adopted The Climate Principles which will help to embed climate change considerations into core business strategies and activities.

2007

2007 was a year of challenges for HSBC.

The weakness in the American property market affected its US subsidiary, HSBC Finance Corporation, and in February the bank issued a trading statement to warn investors about the impact of bad debts. Many other banks follow suit and by the end of the year HSBC is winning plaudits for its early announcement and prudent handling of the situation. In a strategic review of its consumer and mortgage lending businesses, the bank announces the closure of Decision One, its sub-prime mortgage loans wholesale channel.

Elsewhere, HSBC continues to expand its business in key markets and through key products. In April, the bank officially incorporates in China and the chairman announces the intention to 'significantly invest in and develop our business in the country.' By the end of the year HSBC is operating from 53 outlets in the country – up from 39 – and is the first foreign bank to receive permission to open a branch in rural China. September sees the official launch of HSBC Premier – the world's first truly global banking service – which is soon dubbed 'The world's local bank account.'

HSBC continues its long-standing engagement with the environmental agenda when it launches the HSBC Climate Partnership in May. This five-year, US$100m project aims to tackle the causes and impact of climate change. The bank also appoints Nicholas Stern to the post of special advisor on Economic Development and Climate Change. The bank's principles are put into practice to good effect in its new HQ in Mexico which wins Gold awards for its environmental design, construction and operation. This is just one of many awards that HSBC receives throughout the year - others include Asia's top retail bank and the Best International Islamic Bank.

Both looking back, and looking forward, HSBC announces during the year that it has commissioned a new history of the bank to be published in 2015 to coincide with the bank's 150th birthday.

2006

2006 was a year of development and change for HSBC.

Strategic acquisitions throughout the year increased market share and customer numbers especially in the Americas. In February HSBC Latin America Holdings (UK) Limited entered an agreement to acquire the majority of Lloyds TSB’s branch assets in Paraguay, and this was quickly followed by the acquisition in March of a stake in Financiera Independencia  - one of Mexico’s leading companies in the sub-prime consumer loans market with over 100 offices throughout the country. In November, the bank entered fresh pastures with the purchase of Grupo Banistmo. This banking group, based in Panama, gave the bank access to the markets of Colombia, Costa Rica, El Salvador, Honduras and Nicaragua for the first time in its history.

HSBC continued to focus on the development of its personal financial services business in Asia especially in China where the bank was able to offer a new RMB deposit service to domestic customers. Business customers also benefited with the launch of the International Business Centres which facilitate SMEs around the world with their cross border trading.

Climate change and environmental issues remained important to HSBC during the year. Eight thousand bins were removed from HSBC’s head office in June as part of the programme to reduce the amount of waste sent to landfills by 8% by the end of 2007. In June HSBC signed up to the UN principles for responsible investment and was also named the winner in the first FT Sustainable Banking Awards.

In May HSBC bid farewell to Sir John Bond, and welcomed Stephen Green as Group Chairman.

2005

In 2005, HSBC marked 140 years in China by increasing its stake in the country.

The Group opened new branches in Chongqing and Chengdu in the west of the country and in March became the first foreign bank to provide local currency services from its branch in Beijing.

HSBC began selling insurance through Ping An Insurance, China’s second largest life insurer, and increased its stake in the company to 19.9%. In November, HSBC was the title sponsor of the inaugural HSBC Champions golf tournament in Shanghai.

In the Middle East, HSBC reopened its branch in Kuwait, while in the US, the integration of Household International with the Group’s North American operations was completed, under the name ‘HSBC Finance Corporation’.

HSBC continued to tackle the issues of climate change, and reducing the social and environmental impact of its operations. In October, it became the first major bank to go carbon neutral, and in May and August, published sector guidelines governing its activities in the freshwater infrastructure and chemicals industries. 

In 2005, HSBC published the world’s most comprehensive survey of global attitudes to ageing and retirement, while in November, Sir John Bond, HSBC Chairman since 1988, announced he is to retire in May 2006.

2004

HSBC grew organically and through strategic acquisitions in 2004.

The Bank of Bermuda joined the Group in February and minority stakes were acquired in India’s UTI Bank and China’s Bank of Communications Ltd.

In the UK, HSBC bought the retail financial services arm of the Marks and Spencer Group.

The HSBC brand was adopted by its Mexican subsidiary, G F Bital, early in the year and in September the majority of the bank’s North American businesses, including Household International, were united under the name HSBC North America.

HSBC continued its long-standing commitment to the environment, becoming a founder member of the Climate Group in April and announcing its intention in December to become the first major bank to go carbon neutral.

To read the related stories please follow these links:

Bank of Bermuda acquisition
UTI Bank acquisition
Bank of Communications acquisition
Marks and Spencer Money
Bital rebranding
North America rebranding
Climate Group
Carbon Neutral

2003

In April, the new Group head office in Canary Wharf in London officially opened to house some 8000 staff.

HSBC's purchase of Household International Inc. added substantially to the Group's business and profile in the United States; Household’s network of over 1300 branches in 45 states provided consumer finance to 53 million customers.

In France CCF agreed to increase its stake in French private bank Banque Eurofin S.A. to 83.95 per cent and to acquire two further branches of Banque Worms.

HSBC also acquired Keppel Insurance Pte Ltd, a provider of life insurance and Islamic insurance in Singapore; and took full ownership of Equator Holdings Ltd.

2002

From 2002, the HSBC identity carried the strapline of 'The world's local bank', emphasising the Group's experience and understanding of a great variety of markets and cultures. The Group also began its five-year 'Investing in Nature' programme, a partnership in environmental projects with Earthwatch, WWF and Botanic Gardens International.

HSBC acquired and recapitalized Grupo Financiero Bital in Mexico at a total cost of US$1.9 billion. This new member of the Group brought 5.5 million new customers and 1,400 branches in to the network. Elsewhere, HSBC acquired a 10 per cent share of Ping An Insurance Company of China, the second largest life insurance operator in the country.

2001

Purchases during the year included the NRMA Building Society Limited in Australia, Demirbank of Turkey and a 97 per cent interest in China Securities Investment Trust Corporation, Taiwan’s leading asset management company. In December, the bank also took an 8 per cent share in the Bank of Shanghai which was established in 1995 and operates a network of almost 200 branches in the city. 2001 also saw the opening of the only branch in the HSBC network that is open 365 days a year - in Pune in Western India.

2000

In April, HSBC announced a US$11 billion recommended offer for Crédit Commercial de France (CCF). Established in 1894, CCF brought into the Group a network of 650 branches in France and long experience of personal, corporate, investment and private banking, greatly strengthening HSBC’s presence in the euro zone. The deal was completed in July and in that month HSBC Holdings plc was listed on the Paris Stock Exchange for the first time.

During the year HSBC launched HSBC Premier, a new international service for HSBC’s most valuable personal customers.