HSBC 2002 Annual Report Download - page 21

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management and trustee services, completed its
merger with Handelsfinanz-CCF Bank S.A. and
Crédit Commercial de France (Suisse) S.A. This
initiative strengthened HSBC Guyerzeller’ s presence
in Geneva and provided synergies and long-term cost
savings.
During the year HSBC Republic Holdings (CI)
Limited, HSBC International Trustee Limited and
HSBC Financial Services (Cayman) Limited were
transferred under the ownership of HSBC Private
Banking Holdings, increasing the Swiss holding
company’s client funds under management to US$45
billion at 31 December 2002.
With investment activities subdued,
opportunities to increase credit facilities to clients
have been sought actively, and HSBC Private
Banking Holding’s lending book grew by 22 per cent
during 2002. By leveraging HSBC’s extensive
branch network, HSBC expanded the Trust business
in Asia and the Channel Islands, and worked closely
with HSBC insurance experts to launch new tax-
efficient insurance wrapper products. The range of
investment funds offered continued to grow,
especially in the alternative and hedge fund sector
where HSBC has US$10 billion of hedge fund assets
under management. The Hermitage Fund, the largest
public equity fund dedicated to Russia, continues to
be rated as one of the best performing equity funds in
emerging markets.
Following successful trials in Asia during 2001,
the roll out of internet banking services to the UK
and Switzerland was completed in 2002 and there are
now over 5,400 registered private banking internet
clients. HSBC plans to extend this facility to other
HSBC Republic locations during 2003 and to
enhance the services available.
Investment in training and communications has
developed excellent teamwork with HSBC’s retail
banking operations and led to a significant increase
in client referrals from Hong Kong, Singapore and
London, and on a reciprocal basis to the introduction
of significant business to other areas of the Group,
notably HSBC Premier.
The strong core capitalisation of HSBC Private
Banking Holdings and the financial strength of the
HSBC Group continued to represent a significant
competitive advantage as financial strength became
an increasingly important factor for private
individuals and their advisers when reviewing their
choice of which banks to entrust with their assets.
Germany
In Germany, HSBC operates mainly through HSBC
Trinkaus & Burkhardt KGaA (HSBC Trinkaus &
Burkhardt).
Based in Düsseldorf HSBC Trinkaus &
Burkhardt has branches in seven major German cities
and offers a comprehensive range of services to
wealthy private clients, large and medium-sized
enterprises, institutional investors, public
corporations and financial institutions. Its strengths
lie in portfolio management, international business,
interest rate and currency management, new issues
on the debt and capital markets, corporate finance,
and mergers and acquisitions advice, tailored to
clients’ requirements. Client business is underpinned
by trading activities in foreign exchange and interest
rate products, market-making in equities, and trading
in equities derivatives. Investment advisory services
are provided through HSBC Trinkaus Capital
Management GmbH, and HSBC Trinkaus &
Burkhardt Immobilien GmbH manages investments
in closed-end property funds.
HSBC Trinkaus & Burkhardt’s stake in the
funds management company INKA Internationale
Kapitalanlagegesellschaft mbH was increased from
60 per cent to 100 per cent during 2002, in
recognition of the strategic importance of the
securities markets in Germany.
Turkey
Demirbank was acquired from the Turkish Banking
Regulator in October 2001. The purchase included
the acquisition of Demir Yatirim, Demirbank’s fund
management and stockbroking subsidiary. During
2002, the operations and business activities of
Demirbank were successfully integrated into those of
HSBC Bank A.S. Customers are served through a
variety of channels: 163 branches, call centres and
internet banking providing personal, corporate,
treasury, capital markets, stockbroking, fund
management and investment banking services across
the Turkish market.
On 19 September 2002, HSBC Bank A.S.
completed the purchase of Benkar, Turkey’s largest
independent consumer finance and card services
company, and its high-profile ‘Advantage’ brand. At
the time of acquisition, Benkar had over 280
participating merchant firms and over 1 million
Advantage cardholders. The Advantage card is a
combined instalment and loyalty card that can be