31 May 2002
In a new report by the UK’s Department of Trade and Industry (DTI), HSBC is ranked one of Europe’s leading companies for wealth creation.
Analysing the value added to the economy by the top 500 UK and top 300 European companies last year, the DTI calculated that HSBC created £13.4 billion of wealth in 2001. This makes HSBC the biggest wealth creator among UK banks, and the third biggest generator of wealth in the UK economy overall, after Shell and BP. In the European rankings, HSBC was second biggest wealth creator in the banking sector, and ninth overall.
The DTI survey measures wealth as value added, a figure that represents the wealth created to pay employees and shareholders, invest in future success, and pay taxes for investment in public services. In 2001, the total value added by the top 300 European companies rose 17% in 2001 to £1,081 billion.
"Value added is important since it represents the wealth created by a company to pay salaries, wages & pensions to employees, dividends to shareholders, interest to lenders of capital, taxes to governments and to fund investment to grow and develop the business," the report explains.
Secretary of State for Trade and Industry, Patricia Hewitt, wrote in a foreword to the report: "Our future success and growth depend on the ability of all our companies to create sufficient wealth and to grow that wealth year by year. It is this wealth that provides rewarding jobs, attracts investment to sustain and grow the business, and secures a strong tax base from which government can provide essential services and infrastructure."
"With five companies in Europe's top 15, the UK shows that it has the potential to build world-beating companies," Ms Hewitt added. "The scoreboard published today acknowledges their achievements and identifies the successful performers in each sector. By benchmarking themselves against the best in the UK and the best in Europe, I hope that more companies can achieve increased value added, with resulting benefits in competitiveness and profitability."
"Britain is a very competitive place for financial services," Sir John Bond, HSBC Group Chairman said. "HSBC was the third most successful company in Britain and ninth in Europe. We are delighted that the DTI recognises our contribution."
