HSBC Holdings Plc, PAST AND PRESENT

8/14/2019 HSBC Holdings Plc, PAST AND PRESENT

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-Aman Singh



HSBC Holdings plc is a public limited companyincorporated in England and Wales, headquarteredin London.

As of 2008, it is both the world's largest bankinggroup and the world's largest company according toa composite measure by Forbes magazine.

The group was founded from The Hongkong andShanghai Banking Corporation, the acronym of which led to the current name. Today, whilst HongKong still continues to be a significant source of income for the group, no single geographical areadominates earnings. Recent acquisitions andexpansion in China are returning HSBC to part of itsroots.

HSBC is Europe's biggest bank and has anenormous operational base in Asia and significantlending, investment, and insurance activitiesaround the world.



HSBC is one of the oldest banking groups in themodern world. After the establishment of HongKong as a British colony in the aftermath of theOpium War, a bank was needed to finance the

growing trade between China and Europe. Its main and foundation-laying subsidiary TheHongkong and Shanghai Banking Corporationwas established in Hong Kong and Shanghai in1865.

Before 1998 it was also known colloquially as"Hongkong Bank" (by tradition "Hong Kong"always spelled as one word).



In 1990 HSBC wanted to change its domicile to UK and hence purchased Midland Bank. Shares inHSBC Holdings were first listed on the London Stock

Exchange and Hong Kong Stock Exchange in 1991. The acquisition of Midland Bank giving HSBC asubstantial presence in the UK was completed in1992.

Major acquisitions in South America started with the

purchase of Banco Bamerindus of Brazil for $1bn inMarch 1997 and the acquisition of Roberts SA deInversiones of Argentina for $600m in May 1997.

In May 1999 HSBC embarked on a major acquisitionin the United States with the purchase of Republic

National Bank of New York for $10.3bn. Expansion into Continental Europe took place in

April 2000 with the acquisition of Crédit Commercialde France, a large French bank for £6.6bn.



In July 2001 HSBC bought Demirbank, aninsolvent Turkish bank. Then in August 2002

HSBC acquired Grupo Financiero Bital, SAde CV, Mexico's largest retail bank for$1.1bn.

The new headquarters of HSBC Holdings at

8 Canada Square, London officially openedin April 2003. In November 2002 HSBC expanded in the

United States acquiring HouseholdInternational, a US credit card issuer for£9bn.

Then in September 2003 HSBC boughtPolski Kredyt Bank SA of Poland for $7.8bn.



A terrorist attack took place in November 2003: a bomb blastin Istanbul damaged the bank’s head office in Turkey, causingseveral deaths and hundreds of injuries.

In October 2003 HSBC bought the Bank of Bermuda for $1.3bn. In June 2004 HSBC expanded into China buying 19.9% of the

Bank of Communications of Shanghai. Most recently in China,HSBC declined to repurchase its former corporateheadquarters on the Shanghai Bund from the Shanghai PudongDevelopment Bank, which now occupies the magnificent,restored building.

In the United Kingdom HSBC acquired Marks & Spencer RetailFinancial Services Holdings Ltd for £763m in December 2004.

Acquisitions in 2005 included Metris Inc, a US credit card issuerfor $1.6bn in August and 70.1% of Dar Es Salaam InvestmentBank of Iraq in October.

In April 2006 HSBC bought the 90 branches in Argentina of Banca Nazionale del Lavoro for $155m. Later that year, in July

HSBC bought Grupo Banistmo, the largest financial servicescompany in Central America, based in Panama for $1.8bn. In December 2007 HSBC acquired The Chinese Bank in Taiwan. In May 2008 HSBC acquired IL&FS Investment, an Indian retail

broking firm.



The Hongkong and Shanghai BankingCorporation Limited IN 1959 HSBCacquired The Mercantile Bank of India,

London and China, established in October1853 in Bombay (now Mumbai). 1990.HSBCis now one of the fastest growing foreignbanks in India, both in domestic banking

and support operations for worldwideoperations.



This was originally adopted by TheHongkong and Shanghai BankingCorporation as its logo in 1983. It wasdeveloped from the bank’s house flag, a

white rectangle divided diagonally toproduce a red hourglass shape. Like manyother Hong Kong company flags thatoriginated in the 19th century, and because

of its founder's nationality, the design wasbased on the cross of Saint Andrew. Thelogo was designed by graphic artist HenrySteiner.



Having sponsored the Jaguar Racing Formula One team since the days of Stewart Grand Prix,HSBC ended its relationship with the sport when Red Bull purchased Jaguar Racing fromFord. HSBC has now switched its focus to golf, taking title sponsorship of events such as theHSBC World Match Play Championship, HSBC Champions and HSBC Women's Champions.

In football HSBC sponsors French club AS Monaco and Mexican club CF Pachuca, and inrugby league, HSBC sponsors Telford Raiders in the Rugby League Conference. In Australia,HSBC sponsors the New South Wales Waratahs rugby team in the Super 14 rugby unioncompetition, as well as the Hawthorn Football Club in the Australian Football League.

In the United States, HSBC owns the naming rights to the home arena of the NationalHockey League's Buffalo Sabres until 2026.

HSBC’s other sponsorships are mainly in the area of education, health and the environment.In November 2006, HSBC announced a $5 million partnership with SOS Children as part of Future First.

HSBC sponsors the Great Canadian Geography Challenge, which has had around 2 millionparticipants in the past 12 years. Since 2001, HSBC has sponsored the Celebration of Light,an annual musical fireworks competition in Vancouver, British Columbia, Canada. In 2007HSBC announced it would be a sponsor of the National Hockey League's Vancouver Canucksand Calgary Flames. HSBC has also sponsored a professional gaming team that wasdisbanded late 2007.

HSBC will sponsor the British and Irish Lions on the 2009 tour of South Africa. HSBC is the official banking partner of the Wimbledon Tennis Championships, providing

banking facilities on site and renaming the Road to Wimbledon junior event, as The HSBCRoad to Wimbledon National 14 and Under Challenge.

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HSBC Holdings Plc, PAST AND PRESENT