HSBC 2002 Annual Report Download - page 27

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tasks from branches, enabling staff to concentrate on
deepening relationships with customers.
Electronic Documentary Credit Advising, an
internet based trade services product, was launched
in 2002. In addition, there was a major overhaul of
the hsbc.ca website and Business Internet Banking
was launched.
Mexico
GFBital, which is headquartered in Mexico City, has
nation-wide coverage from a network of 1,350
branches and nearly 4,000 automatic teller machines
servicing the bank's customers, which, numbering
nearly five and a half million, represent the largest
personal customer base of any banking institution in
Mexico. HSBC plans to use this network and
customer base to expand personal banking services
and cross-sell other products and services,
particularly leveraging the important position now
held in all of the North American Free Trade
Agreement countries (Canada, the US and Mexico).
Through its subsidiary Banco Internacional S.A.,
GFBital provides comprehensive retail and consumer
banking products and services using its branches and
state of the art internet and tele-banking facilities. In
addition, Casa de Bolsa Bital, a brokerage house,
offers investment banking and fund management
products and services, through the branch network.
GFBital has a joint venture insurance and
pension investment with ING, offering life, auto,
property, health insurance and pension products
through branches.
South America
South America contributed a loss of US$58 million
to HSBC’s profit on ordinary activities before tax in
2002 compared with a loss of US$1,016 million in
2001. HSBC’s operations in South America
principally comprise HSBC Bank Brasil and HSBC
Bank Argentina S.A., with small operations in Chile,
Uruguay and Venezuela.
Brazil
HSBC Bank Brasil, which is headquartered in
Curitiba, has an extensive domestic network, with
over 1,500 branches and offices, 3.5 million personal
customers and over 250,000 business and
institutional customers. HSBC’s goal is to use this
network, the third-largest of the privately-owned
banks in Brazil, as a platform to expand personal
banking services and cross-sell other products and
services, particularly insurance, funds management
and leasing services.
HSBC operates the seventh-largest insurance
business in Brazil, offering a broad range of
insurance products. As part of HSBC’s overall cross-
selling strategy, most of the staff of HSBC Bank
Brasil’s insurance and banking offices are being
located together in order to maximise cross-sale
opportunities.
HSBC Bank Brasil also manages HSBC
Investment Bank Brasil S.A.-Banco Múltiplo
(formerly known as Banco CCF Brasil S.A), which
is owned by CCF. The business complements
HSBC’s capital markets and insurance operations
and has brought significant additions to HSBC’s
private banking and asset management operations in
Brazil. Total assets under management were US$5.9
billion at 31 December 2002, making HSBC the
fifth-largest fund manager in Brazil.
Argentina
Argentina has undergone significant financial turmoil
in 2002, with a consequent adverse impact on the
economy. It remains unclear when this position will
improve. HSBC in Argentina has a total staff of over
4,100 employees and a total of 115 sales points, of
which 58 are bank branches and 57 are insurance,
pension, annuities and health care outlets. HSBC
Bank Argentina S.A. is the seventh-largest privately-
owned bank in Argentina in terms of deposits and
sixth-largest in terms of assets and loans. HSBC also
has one of the largest insurance businesses in
Argentina, HSBC La Buenos Aires, and through its
subsidiaries HSBC Máxima and HSBC New York
Life offers pensions and life assurance. HSBC’s
Argentinian health care subsidiary, HSBC Salud,
provides pre-paid medical services and is the fourth-
largest pre-paid health care company in Argentina (in
terms of membership) and the leading one in the
corporate market.
Competitive environment
HSBC Holdings and its subsidiaries face keen
competition in all the markets they serve. HSBC
competes with other major financial institutions,
including commercial banks, savings and loan
associations, credit unions, consumer finance
companies, major retailers, brokerage firms and