HSBC 2012 Annual Report Download - page 15

13
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
HSBC’s vision
Purpose
Values
Strategy
Outcome
We aim to be where the economic growth is, connecting customers to
opportunities, enabling businesses to thrive and economies to prosper, and
ultimately helping people to fulfil their hopes and realise their ambitions.
Reason
why we
exist
How we
behave and
conduct
business
Where and
how we
compete
Act with courageous integrity by being:
•dependable and doing the right thing;
•open to different ideas and cultures; and
•connected to customers, regulators and each other.
•International network connecting faster-growing and developed markets
•Develop Wealth Management services and invest in retail banking only in
markets where we can achieve profitable scale
Being the
world’s leading
international
bank
Our pro forma post-tax profit allocation in 2012
11
:
•60% of earnings retained
•29% to shareholders as dividends
•11% variable pay
For footnote, see page 120.
Principal activities
Our purpose is to enable businesses to
thrive and economies to prosper, helping
people fulfil their hopes and realise their
ambitions.
HSBC is one of the largest banking and financial
services organisations in the world, with a market
capitalisation of US$194bn at 31 December 2012.
We are headquartered in London.
Our products and services are delivered to
clients through four global businesses, Retail Banking
and Wealth Management (‘RBWM’), Commercial
Banking (‘CMB’), Global Banking and Markets
(‘GB&M’) and Global Private Banking (‘GPB’).
We operate through long-established businesses
and have an international network of some 6,600
offices in 81 countries and territories in six
geographical regions; Europe, Hong Kong, Rest
of Asia-Pacific, Middle East and North Africa
(‘MENA’), North America and Latin America.
Taken together, our five largest customers do
not account for more than 1% of our income. We
have contractual and other arrangements with
numerous third parties in support of our business
activities. None of the arrangements is individually
considered to be essential to the business of the
Group.
Continuing the Group-wide review of our
businesses, 26 disposals or closures of non-strategic
and non core investments were announced in 2012
and a further four in 2013, taking the total to 47
since 2011. The most significant of these
transactions which were completed in 2012 were the
sale of the US Card and Retail Services business and
the upstate New York branches for a total gain of
US$4.0bn. In December 2012, we announced an
agreement to sell our entire shareholding in Ping An
Insurance (Group) Company of China, Limited
(‘Ping An’), the sale of which was completed on
6 February 2013, generating a gain of US$3.0bn. For
further information on all disposals, see page 27.
In 2012, we merged our operations in Oman
with those of the Oman International Bank S.A.O.G.
(‘OIB’) and acquired the onshore retail and
commercial banking businesses of Lloyds Banking
Group in the United Arab Emirates (see page 470).
HSBC Values
Embedding global standards across HSBC in
a consistent manner is a top priority and will
shape the way we do business.
The role of HSBC Values in daily operating practice
is fundamental to our culture in the context of the
financial services sector and the wider economy.
This is particularly so in the light of
developments and changes in regulatory policy,
investor confidence and society’s view of the role of
banks. We expect our executives and employees to
act with courageous integrity in the execution of
their duties by being:
• dependable and doing the right thing;
• open to different ideas and cultures; and
• connected with our customers, communities,
regulators and each other.
We continue to enhance our values-led culture
by embedding HSBC Values into how we conduct
our business and in the selection, assessment,
recognition and training provided to staff.