HSBC 2005 Annual Report Download - page 13

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minimising compulsory redundancies wherever
possible.
HSBC seeks to promote and recruit the most
able people and attaches great importance to
cultivating its own talent. Resources have been set
aside to ensure a supply of talented individuals to
meet business succession needs, with support
provided for these employees in the form of career
enhancement and personal development
programmes. In addition, HSBC recognises that
there are lessons to be learned from other successful
businesses, and will recruit from non-banking
industries where appropriate.
Customer groups
Profit before tax by customer group
Year ended 31 December 2005
US$ million
Personal Financial Services Commercial Banking
Corporate, Investment Banking and Markets Private Banking
Other
Total assets1 by customer group
As at 31 December 2005
%
Corporate, Investment
Banking and Markets 50.7
Personal Financial Services 31.7
Commercial Banking 11.7
Private Banking 4.0
Other 1.9
1Excluding Hong Kong Government certificates of
indebtedness.
Personal Financial Services
Personal Financial Services provides some 120 million
individual and self-employed customers with a wide
range of banking and related financial services. The
precise nature of the products and services provided is,
to some extent, driven by local regulations, market
practices and the market positioning of HSBC’s local
businesses. Typically, products provided include
current and savings accounts, mortgages and personal
loans, credit cards, and local and international
payments services.
Personal customers prefer to conduct their
financial business at times convenient to them, using a
range of delivery channels. This demand for flexibility
is met through the increased provision of direct
channels such as the internet and self-service terminals,
in addition to traditional and automated branches and
service centres accessed by telephone.
Delivering the right products and services for
particular target markets is a fundamental requirement
in any retail service business, and market research and
customer analysis is key to developing an in-depth
understanding of significant customer segments and
their needs. This understanding of the customer
ensures that Customer Relationship Management
(‘CRM’) systems are effectively used to identify and
fulfil sales opportunities, and to manage the sales
process.
HSBC Premier is a premium banking service
providing personalised relationship management,
24-hour priority telephone access, global travel
assistance and cheque encashment facilities. There are
now over 1.3 million HSBC Premier customers, who
can use more than 250 specially designated Premier
branches and centres in 35 countries and territories,
either when visiting, or on a more permanent basis if
they require a banking relationship in more than one
country.
Insurance and investment products play an
important part in meeting the needs of customers.
Insurance products sold and distributed by HSBC
through its direct channels and branch networks
include loan protection, life, property and health
insurance, and pensions. Acting as both broker and
underwriter, HSBC sees continuing opportunities to
deliver insurance products to its personal customer
base.
HSBC also makes available a wide range of
investment products. A choice of third party and
proprietary funds is offered, including traditional
‘long only’ equity and bond funds; structured funds
that provide capital security and opportunities for an
enhanced return; and ‘fund of funds’ products which
offer customers the ability to diversify their
investments across a range of best-in-class fund
managers chosen after a rigorous and objective
selection process. Comprehensive financial planning
services covering customers’ investment, retirement,
personal and asset protection needs are offered
through specialist financial planning managers.
9,904
4,961 5,163
912
26
0
2,000
4,000
6,000
8,000
10,000
12,000