HSBC 2011 Annual Report Download - page 8

HSBC HOLDINGS PLC
Report of the Directors: Overview (continued)
Group Chairman’s Statement / Group Chief Executive’s Business Review
6
We shall miss them both and thank them
sincerely for their contributions over many years.
We are delighted to welcome two new faces to
the Board. Joachim Faber and John Lipsky will join
the Board on 1 March.
Joachim Faber stepped down from the
Management Board of Allianz at the end of 2011
where he served latterly as CEO of Allianz Global
Investors one of the top five investment managers
globally. He brings a wealth of experience from the
perspective of the investor as well as in depth
knowledge of banking, insurance, finance and capital
markets from previous roles in a long and
distinguished career.
John Lipsky is one of the world’s best known
and respected economists who most recently served
as First Deputy Managing Director at the IMF from
which he retired in November 2011. Over the last
five years John has been one of the key links
between macroeconomic policymakers and the
financial community and brings to the Board an
exceptional depth of knowledge and understanding
of the macroeconomic and geopolitical issues that
will shape the future of the global economy.
Fuller details of their background and
experience are set out in the Directors’ Report.
Brand and reputation
At HSBC we continue to think long term as we build
business platforms and relationships that will create
options for value creation in generations to come.
Tactically there are necessary difficult decisions
to take in today’s subdued economic environment
but these are always weighed against what is right
for the long-term health of the business. Similarly
when things go wrong, as they will from time to
time, we judge ourselves, inter alia, against how we
respond and how quickly we learn from the
experience. Nothing is more important than our
reputation.
It was a moment of great pride within the
organisation when we were judged to be the most
valuable banking brand in the world in the recent
Brand Finance® Banking 500 2012 report. This is the
fourth time HSBC has headed the list in the last five
years. This recognition is a testament to the work of
all my colleagues in building value for customers
that translates to shareholder value.
At the same time, however, we reflect that in
2011 we continued to deal with legacy regulatory,
legal and reputational issues which remind us that
our good work can be destroyed by lapses of
judgement or control. The settlement of claims
around the historical selling of Payment Protection
Insurance in the UK, the fine and compensation
arising from the now closed NHFA Limited
business, and ongoing regulatory and legal
investigations in the US across a number of areas
are all matters from which we need to learn to ensure
they do not recur. The programme of values training
which the Group Chief Executive is leading for all
employees is but one measure to this end. We are
truly sorry to all those who were adversely affected
by our failings and to our shareholders for the
reputational damage incurred.
Looking ahead
It is just over a year now since Stuart Gulliver and I
took on our respective roles. During that time, the
leadership team around Stuart has grown in stature
and cohesion and is, I believe, among the best in our
industry. That team is supported strongly by talented
colleagues whose engagement and commitment to
the strategic priorities laid out before them is evident
and enthusiastic. On behalf of the Board I want to
take this opportunity to thank them for their support
and dedication. The uncertain economic and
geopolitical backdrop will continue to raise
challenges throughout 2012 and beyond. I am,
however, confident that HSBC has the people, the
financial strength and the right strategic focus and
values to do well for those who place their trust in
us, thereby meeting their expectations of us and
contributing to the fulfilment of their aspirations and
ambitions. That is what we exist to do.
D J Flint, Group Chairman
27 February 2012