The aims of this project are to introduce HSBCs' financial situation, strategy etc.
Introduction
The aims of this project are to introduce HSBC's financial situation, strategy etc. it will also compare the reports from year 1998 to 2002 to analyze HSBC's business performances, and forecast its future prospects.
According to the financial data that was found in Internet, HSBC Holdings plc showed their successful business performance and steady going share price fluctuated. Whole company has showed the health improvement. It completely attracts me.
Methods
HSBC Holdings plc is one of the largest banking and financial services organization in the world, it is held by around 190,000 shareholders in some 100 countries and territories. HSBC's international network comprises over 9,500 offices in 80 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. It provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.
In order to prepare this project, the information and the financial report from were found from HSBC's website, Financial Times's website. The research shows HSBC Holdings plc is a successful services organization that has old-line history, fully and high quality services. The data, which is from HSBC's financial report, showed that HSBC's business performances have been rising. It attracts more and more customers and shareholder to invest.
Finding
Firstly, I will take an overview of HSBC's financial report from year 1998 to 2002. In this part, the operating profit before provisions (Table 1) and capital resources (Table 2) will be pointed out by two graphs.
Base on this graph, a successful business performance in last five years was shown. The turnover of HSBC from year 1998 to 2002 was shoot up from 1,745£m to 2,695£m, it increase 950£m over the five years, on average increase 190£m every year.
In this graph, HSBC's capital resources development from year 1998 to 2002 was ...
This is a preview of the whole essay
Finding
Firstly, I will take an overview of HSBC's financial report from year 1998 to 2002. In this part, the operating profit before provisions (Table 1) and capital resources (Table 2) will be pointed out by two graphs.
Base on this graph, a successful business performance in last five years was shown. The turnover of HSBC from year 1998 to 2002 was shoot up from 1,745£m to 2,695£m, it increase 950£m over the five years, on average increase 190£m every year.
In this graph, HSBC's capital resources development from year 1998 to 2002 was shown; it presents an increasing curve. The capital resources of HSBC from year 1998 to 2002 was shoot up from 7,918£m to 12,768£m, it increase 4,850£m over the five years, on average increase 970£m every year. Hereinto, there was a quantum jump in year 2000. The capital resources increase 3,406£m more than year 1999. The financial highlights are influenced by changes in the group structure over the five years. The most significant acquisitions are as follows: " in 2000, HSBC Private Banking Holdings (Suisse) SA, CCF S.A. (formerly Crédit Commercial de France S.A.); in 2001, HSBC Investment Bank Asia Limited, Banque Hervet, Demirbank TAS, HSBC Guyerzeller Bank AG; in 2002, HSBC Trinkaus & Burkhardt KGaA, HSBC Republic Bank (UK) Limited and activities of HSBC Investment Bank plc."* (Annual Report and Accounts 2002)
Secondly, I would like to point out the share price fluctuated of HSBC Holdings plc in sometime. (Table 3)
According this graph, HSBC's share price in which London Stock Exchange from June 2001 to 31 May 2002 was shown. During those times, the share price has fluctuated, especially during September; there was an acutely fluctuated because of the attack at New York in 11th of September. However, as a whole, the share price of HSBC Holdings plc was presented as a steady curve without fluctuates by chance.
Discussion
According to analyses of HSBC's financial report. It was found that HSBC Holdings plc has been absolutely successful for their strategy; it showed very strong operational performance and nice future prospects. In the stock exchange, the share price of HSBC Holdings plc also presented an advancing direction.
In addition, HSBC aims to become the world's leading financial services organization. HSBC's goal is to balance earnings between mature economies and the faster growing. So in order to achieve this, HSBC has developed a strategy of 'Managing for Value' designed to build on its achievements. This strategy is evolutionary and has three point components:
. To concentrate on delivering "wealth management" to key market around. Wealth management means deepening relationships with personal customers beyond the provision of a simple check account and lending products. HSBC will offer these customers the full range of financial services and products.
2. To grow its commercial business. This market consists of a wide range of businesses, which is including major companies, trading enterprises, professional practices, charities, entrepreneurs and smaller businesses. HSBC has been very successful in this market.
3. To integrate corporate and investment banking services for HSBC's largest customers. It will help HSBC meet the requirements of its clients - some of the world's largest and most successful companies.
Conclusion
In conclusion, we have overview HSBC Holdings plc and analyzed its financial report. As I given, HSBC Holdings plc is one of the largest banking and financial services organization in the world. In last five years time, it showed an excellent financial result. However, it also needs to improve in some parts. For example, HSBC's private bank needs to put out more new strategies attract customer.
Recommendation
According to analyses the HSBC Holdings plc, I am very interest this company. Base on the data, I can see the successful performance, excellent financial result from company, and HSBC Holdings plc are with great confidence for their future prospects. So if I am investor, I will invest in HSBC Holdings plc, it is worthy of confidence.
Reference:
HSBC Holdings plc (2002), available at: http://www.hsbc.com/
HSBC Holdings plc, Annual Report (2002), http://www.hsbc.co.uk/
Business project
By Ou Gaoqiang (James)
