HSBC 2015 Annual Report Download - page 33

Profit before tax
($bn)
2015 2014
0.3
0.6
0.5
0.7
Reported
Adjusted
Continued repositioning of our
GPB business
– Adjusted profit before tax fell by 26%
to $0.5bn, mainly because revenue fell
by 6% as we continued to reposition the
GPB business.
– However, revenue increased in Asia,
notably in the first half of 2015, due to
higher client activity as a result of a strong
stock market performance, which more
than offset the weaker investor sentiment
in the second half of the year.
– We attracted positive net new money
of $14bn in 2015 in the parts of the
business that fit our target model,
mainly in Hong Kong, the UK, Singapore
and the US.
Products and services
We work closely with our clients to
provide solutions to grow, manage
and preserve wealth. Our products
and services include: Investment
Management, incorporating advisory,
discretionary and brokerage services;
Private Wealth Solutions, comprising
trusts and estate planning, designed
to protect wealth and preserve it for
future generations; and a full range
of Private Banking services.
Business synergies
GPB aims to bring the best of the
Group’s research, product and service
capabilities to GPB clients.
To achieve this, we have three client
service groups: the Corporate Client
Group, enhancing connectivity with
CMB and GB&M; the Wealth Client
Group, delivering a seamless transition
across the RBWM and GPB wealth
franchises; and the Global Solutions
Group, delivering non-traditional
wealth management solutions.
Wherever possible, GPB uses product
capabilities within GB&M, CMB and
RBWM, including asset management,
research, insurance, trade finance
and capital financing, to offer a unique
proposition to our clients.
Areas of focus
GPB aspires to build on HSBC’s
commercial banking heritage and be
the leading private bank for high net
worth business owners and principals.
We work closely and systematically
with CMB and GB&M to deliver a
coordinated private and corporate
coverage model for our clients.
Customers
GPB serves high net worth individuals
and families, including those with
international banking needs, through
18 booking centres covering our
priority markets.
Since 2011, GPB has taken significant
steps to simplify and improve the way
it conducts its business. We have
reduced the number of booking centres
to refocus resources on a smaller
number of locations where we have
the scale to support our new client
service model and enhanced sales
quality standards.
We have also reduced the number of
offshore markets we cover to ensure
appropriate focus is given to key
growth areas.
GPB remains committed to implementing
the most effective global standards,
including customer due diligence, a tax
transparency framework and financial
crime compliance measures.
Global Private Banking (‘GPB’)
Adjusted profit before tax
-26%
$14bn
net new money
(areas targeted
for growth)
$349bn
client assets
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HSBC HOLDINGS PLC
31
Global businesses