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First four months results ahead of 2003 says HSBC Chairman
28 May 2004
“In the first four months of this year, our results across all customer groups and geographic regions were ahead of the same period in 2003,” Sir John Bond, HSBC Chairman, told shareholders today.
“The improving economic environment we noted when we announced our results for 2003 has continued to gain momentum as 2004 unfolds.”
Reviewing the Group’s performance in 2003, Sir John told shareholders that it was “a good year for HSBC”, with profit attributable to shareholders up 41 per cent, to US$8.8 billion.
The integration of two new businesses - US-based Household International, and HSBC Mexico - formerly GF Bital - which were acquired by HSBC in 2003 and 2002, proceeded well. “Our platform for growth in Mexico is firmly in place,” Sir John said. “And the acquisition of Household has given your Group a new line of business - Consumer Finance - which is well-established in the US and which we believe has great potential in other economies around the world.”
2003 also marked the end of HSBC’s five-year strategy of Managing for Value. Over that period, dividends grew at an annual compound growth rate of 14 per cent. HSBC also met its target of doubling total shareholder return over the period of the strategy, and significantly out-performed a benchmark peer group. £100 invested in competitors would have returned £126 over the period, compared with a return of £211 for the same amount invested in HSBC. The return on the FTSE100 would have been just £87.
Sir John went on to talk about the contribution made by the Board of Directors to HSBC’s success. “The blend of knowledge and experience that our directors bring to HSBC puts it among the best boards anywhere,” he said. “Your directors bring experience of different geographies, different industries and different aspects of commerce. Collectively, they have experience of working in 33 different countries.”
The Board also has a vital role in ensuring that HSBC maintains the highest standards of corporate behaviour. “What is important is the way a company behaves, at all levels. Words are not enough. Our reputation depends on deeds,” said Sir John. “We will continue to aspire to the very highest standards.”
A corporate social responsibility (CSR) committee was established in 2003, made up of three non-executive directors, William Fung, Sharon Hintze and Carole Taylor, joined by Lord May, President of the Royal Society, and Gerry Davis, a former teacher and local government leader.
The chairman commented particularly on the significant environmental challenges the world faces in the 21st century, and steps HSBC has taken to become more sustainable, including reducing its greenhouse gas emissions. The Group’s latest initiative was unveiled at the AGM - the implementation of new business guidelines on Forest Land and Forest Products. “This is an opportunity to work with the Group's customers to achieve sustainable forestry practices,” Sir John said.
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Chairman's AGM Statement
