Emerging Markets: Central to our Strategy

HSBC’s strategic direction reflects its position as ‘The world’s local bank’, combining the largest global emerging markets banking business and a uniquely cosmopolitan customer base with an extensive international network and substantial financial strength.

The Group's strategy is aligned with the key trends that are shaping the global economy. In particular, HSBC recognises that, over the long term:

1. developing markets are growing faster than the mature economies;
2. world trade is expanding at a greater rate than gross domestic product; and
3. life expectancy is lengthening virtually everywhere.

The means of executing the strategy and making greater use of the linkages within the Group are clear:

• the HSBC brand and global networks will be leveraged to reach new customers and offer further services to existing clients;
• efficiency will be enhanced by taking full advantage of local, regional and global economies of scale, in particular by adopting a common systems architecture wherever possible; and
• objectives and incentives will be aligned to motivate and reward staff for being fully engaged in delivering the strategy.

HSBC in Emerging Markets:

• HSBC’s birthplace was in Hong Kong and Shanghai in 1865.
• HSBC is the largest international Emerging Markets bank.
• In 2009, HSBC generated PBT US$10.8bn in Asia, Latin America, and the Middle East.
• HSBC is the leading international bank in mainland China:
  -in 2009 HSBC generated PBT of US$111m in mainland China;
  -100 outlets in 23 cities;
  -12 Rural Bank outlets opened.
• HSBC is the leading international bank in the Middle East.
• HSBC has over 4,000 offices across Latin America.
• HSBC's Global Banking and Markets strategy is emerging markets-led, financing-focused:
  -50% of 2009's record PBT of US$10.48bn was generated in emerging markets;
  -won key industry awards in 2010, including 'Best Emerging Markets Bank' and 'Best Emerging Markets Debt House' from Euromoney.
• HSBC has the largest international Commercial Banking franchise:
  -3.1m customers of which 53% are in emerging markets;
  -In 2009, 57% of PBT was from emerging markets.

Latest speeches

• 18 February 2010 - Stephen Green's speech to the Foreign Policy Association, New York (3 page pdf 33K)
• 27 April 2010 - Group CEO’s speech to the American Chamber of Commerce in Hong Kong (4 page pdf 40K)
• Stephen Green - Article in The Economist's World in 2010 (1 page pdf 76K)
• Michael Geoghegan - Article in Wall Street Journal in 2010 (1 page pdf 22K)