HSBC 2011 Annual Report Download - page 52

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Global businesses > CMB / GB&M
50
winning ClientSphere platform in the regions to
help simplify our customers’ cash management.
• Successful cross-border referrals within CMB
increased by 12% compared with 2010, with
a total transaction value in 2011 of more than
US$20bn. A significant proportion of this
increase came from mainland China as Chinese
companies looked to expand internationally.
• We maintained our position as a leading
international bank for renminbi products with
services offered in over 50 countries. Our
geographical coverage of renminbi cross-border
trade services is the widest of all foreign banks
in mainland China. We continue to develop new
products in the currency, including renminbi
structured deposits, renminbi cashier orders and
the renminbi business card in Hong Kong.
Strong partnership with GB&M
• Our customers benefit significantly from our
partnership with GB&M. By working with our
colleagues in the GB&M product teams we are
able to provide customers with financing
solutions, including access to capital markets
and risk management products, as they expand
internationally. Revenues from sales of GB&M
products to CMB customers, which are shared
between the two global businesses, grew
strongly in all regions, increasing by more than
US$500m compared with 2010. This was
primarily from foreign exchange activity but
also interest rate management products,
leveraged and acquisition finance and debt
capital markets.
• In collaboration with GB&M, we have
successfully completed our first global US
dollar/renminbi cross-currency swap. We are
also able to benefit from our market leading
status in offshore renminbi bonds.
• We continued to work closely with the other
global businesses. CMB referred 43% of the
total net new money generated from internal
referrals to GPB in 2011, and successful internal
premier account referrals from CMB to RBWM
increased by 27%.
Capture growth in international SMEs
• At the end of 2011, we had over 3.4m customers
worldwide in Business Banking, which
represented 54% of CMB’s total deposits.
• To optimise our Business Banking portfolio
performance, we are reshaping our business
portfolio based on the five filters and
accelerating investment to enhance our
international connectivity, notably in those
markets such as Brazil, Mexico, mainland
China, the US, Malaysia, Indonesia, Singapore
and Turkey which we see as core to providing
opportunities for growth.
• We are repositioning Business Banking to focus
on attracting and better serving the growing
number of internationally aspirant SMEs. In the
UK we invested in International Commercial
Managers (‘ICM’s) who focus exclusively on
international customers and we will continue to
invest in ICMs in other markets in 2012.
• Partnerships with leading international
businesses are helping to position HSBC as
the bank of choice for international SMEs. In
the US, we signed a partnership agreement
with the Export-Import Bank in the US and in
the UAE we entered into partnerships with a
number of Free Trade Zones to provide
improved access to banking services for
internationally-oriented SMEs.
• We exceeded our 2011 lending intentions under
Project Merlin in the UK, both in terms of total
and SME facilities.
Drive efficiency gains through adopting a global
operating model
• During the second half of 2011 and continuing
in 2012, we are rolling out a globally consistent
business model across all CMB countries to
realise cost efficiencies through greater
standardisation of key processes and practices.
This includes the deployment of streamlined
cross-border account opening, trade processing
and credit approval processes which will reduce
the time it takes to bring new customers on
board. We are also undertaking an
organisational effectiveness review to align and
standardise our business structures across
countries, which will result in a reduction in
staff numbers and will allow us to redeploy
resources towards our key growth markets.
• We continued to develop our direct banking
solutions to enhance accessibility and service
for our customers. HSBCnet, our internet
banking platform, now has over 400,000 users
with access from more than 200 countries
worldwide. Following a successful pilot in the
first half of 2011, HSBCnet Mobile was
launched in more than 60 countries. In addition,
over 200,000 customers have downloaded our
iApp, which is now live in five countries.