HSBC 2002 Annual Report Download - page 16

HSBC HOLDINGS PLC
Description of Business (continued)
14
Financing and Advisory Services. These comprise
capital raising, including debt and equity capital,
structured finance, and syndicated finance,
leveraging links with other areas of the business to
provide full distribution for these instruments;
corporate finance and advisory services including
those in connection with mergers and acquisitions,
asset disposals, stock exchange listings,
privatisations and capital restructurings; project and
export finance services providing non-recourse
finance to exporters, importers and financial
institutions, working closely with all major export
credit agencies; aviation and structured finance for
complex and tax efficient investment facilities; and
Amanah finance which provides structured products
that are consistent with Islamic laws.
Investor services. These comprise treasury and
capital markets services for supranationals, central
banks, corporations, institutional and private
investors, financial institutions and other market
participants. Products include foreign exchange;
currency, interest rate, bond and other specialised
derivatives; government and non-government fixed
income and money market instruments; precious
metals and exchange traded futures. Equity services,
including research, sales and trading for institutional,
corporate and private clients and asset management
services, including global investment advisory and
fund management services, are also offered.
Insurance services. These comprise a narrow range
of specialist insurance services for major corporate
and institutional customers.
Private Banking
Private Banking provides world class financial
services to high net worth individuals and their
families, through four distinct businesses:
• HSBC Republic, HSBC’ s principal international
private banking division;
• HSBC Guyerzeller, a traditional Swiss private
bank focusing on discretionary management and
trustee services;
• CCF Private Banking, with its strong presence
in the euro zone; and
• HSBC Trinkaus & Burkhardt, providing
banking and fund services in Germany,
Luxembourg and Hong Kong.
As part of HSBC’s strategic objectives, the
onshore and offshore businesses have now been
unified in the UK and the process of alignment is
under way in the US. Private Banking works closely
with HSBC’s retail, commercial and corporate and
investment banking networks to generate and
maintain ‘two-way’ client referrals.
Client services include deposits and funds
transfer, tax and trustee structures, asset and trust
management, mutual funds, currency and securities
transactions, lending, letters of credit, guarantees and
other extensions of credit on a collateralised basis.
The high net worth client requires a highly
differentiated service, provided through a
combination of geographical presence and
specialised bankers. Working in collaboration with
other members of HSBC, Private Banking is able to
provide its clients with not just private banking, trust,
and wealth management services, but a
comprehensive range of financial services, including
corporate banking, investment banking and
insurance.
In 2002, Private Banking launched WTAS and
several successful product offerings, particularly in
the area of alternative investments and tax-efficient
insurance wrapper products. The trust business has
been expanded in the US, Asia and the Channel
Islands and, building on its success in Asia, internet
banking services were rolled out to the US, UK and
Switzerland.
Geographical Regions
Profit before tax split by geographical region
Year ended 31 December 2002
Europe Hong Kong
North America Rest of Asia-Pacific
South America
3,500 3,710
1,238 1,260
-58
-500
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
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