HSBC 2001 Annual Report Download - page 23

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is currently focused on increasing its personal
insurance products, and cross-selling these to its
personal customer base utilising its branch network,
local sales forces, direct telephone capabilities and
internet delivery channels.
Commercial Banking
The Commercial Banking segment covers middle
market and smaller commercial relationships which
fall between the Personal Financial Services and
Corporate and Institutional Banking segments.
Commercial Banking comprises some 1.8 million
customers world-wide and includes incorporated
businesses, trading entities, partnerships, sole traders,
clubs and associations.
Similar to the Personal Financial Services
segment, HSBC provides a wide range of banking
and related financial services to its commercial
customers through its extensive branch network.
Principal products and services for commercial
customers include current and savings accounts,
corporate and purchasing cards and loans. Treasury
services are also available to commercial customers.
Relationship managers maintain prime contact with
customers and direct and co-ordinate access to
HSBC’s comprehensive range of services.
Relationships are managed either at local branch
level or through a network of commercial banking
centres.
As at 31 December 2001, HSBC had total
commercial customer deposits of US$81 billion and
total commercial customer loans and advances, net of
suspended interest and provisions for bad and
doubtful debts, of US$82 billion.
Trade services. HSBC has more than 130 years of
trade services experience and expertise. This core
business is supported by HSBC’s branch network
throughout the Asia-Pacific region, Europe, the
Americas and the Middle East, making HSBC one of
the world’ s largest trade finance and services
organisations.
Offering a complete range of traditional
documentary credit, collections and financing
products, as well as specialised services such as
insured export finance, factoring and forfaiting,
HSBC seeks to bring value to its customer
partnerships – with solutions that are tailored to meet
their requirements, supported by HSBC’s highly
automated systems.
Leasing, finance and factoring. HSBC provides
leasing, finance (including instalment and invoice
finance) and factoring services, primarily to
commercial customers in the United Kingdom, Hong
Kong, the United States and France. HSBC has
established special divisions to finance commercial
vehicles, plant and equipment, materials handling,
machinery and large, complex leases. It also provides
services for consumer finance and small businesses.
Payments and cash management. HSBC is a
leading provider of payments, collections, liquidity
management and account services world-wide,
enabling financial institutions and corporate
customers to manage their cash efficiently on a
global basis. HSBC’s ability to provide high-quality
cash management services is enhanced by its
extensive network of offices and strong domestic
capabilities in many countries, including direct
access to local clearing systems. A key component of
HSBC’s market leadership in cash management is
the continuing innovation and flexibility in electronic
delivery using internet-enabled, file transfer or PC-
based technology, to best suit the client’s needs.
Insurance. HSBC is able to offer business
customers a range of insurance protection, employee
benefits and pension schemes to meet the needs of
the business itself, of its employees and also to fulfil
the statutory obligations of the company. HSBC
provides these products either as manufacturer or as
supplier of third party products and acts either as
intermediary (broker, agent or consultant) or direct
supplier.
The range of products and services includes:
property damage; business interruption/loss of
profits; public and products liability; employers
liability; professional liability/directors and officers
liability; group life, pension schemes, healthcare
schemes; key man life insurance; car fleet; goods in
transit; trade credit protection; risk management and
insurance due diligence reviews; and
actuarial/employee benefit consultancy.
Corporate, Investment Banking and Markets
This segment covers HSBC’s Corporate and
Institutional Banking and Investment Banking and
Markets businesses. The results of these businesses
are shown together to reflect the role of HSBC’s
Investment Banking and Markets operation in
providing integrated solutions to the major
international clients of the Corporate and