HSBC 2012 Annual Report Download - page 73

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Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
• As a result of recent investment in our equity
execution platform and research capabilities in
emerging markets, we progressed in repositioning
the business for future growth and enhanced our
ability to respond to client needs. We are now
ranked in the top five of equities brokers in Hong
Kong, while our ranking in the Asiamoney 2012
Brokers Poll for Asian Equity Research and Sales
rose from fifth in 2011 to second in 2012.
• In a challenging economic environment, our
clients demand visibility and control of their
intra-day cash positions. To facilitate this,
we expanded the Global Liquidity Solutions
platform within Payments and Cash
Management, and it is now live in 27 countries.
We were also the first foreign bank to gain
approval to establish an automated, cross-border
pooling structure in mainland China. The pilot
scheme, which aims to centralise foreign
currency management for multinational
companies by connecting their onshore and
offshore cash management structures, will
enable our clients to manage their cash positions
more efficiently.
• We are actively managing our legacy credit
exposures and exited from certain positions,
including ABSs in the UK and certain structured
credit positions and related hedges in the US
during 2012. We will look to reduce the size of
this portfolio further as opportunities arise,
using the economic framework put in place in
2011 (see page 18).
Collaborate with other global businesses to deliver
incremental revenues
• We have worked closely with CMB to provide
their clients with appropriate GB&M products
and this has delivered nearly US$0.7bn in
incremental gross revenue since 2010. Gross
revenues, which are shared across the two global
businesses, grew by over US$0.1bn in 2012, or
by 5%, mainly driven by sales of foreign
exchange products. A number of appointments
during the year, including a new Head of
Commercial Banking Coverage for Asia-Pacific
in Global Banking, further strengthened
collaboration efforts and enhanced our ability
to meet the financing needs of our clients.
• We continued to enhance collaboration across the
Group through the Institutional Private Clients
(‘IPC’) initiative with GPB and the Premier
referrals initiative with RBWM, leading to higher
revenues and increased Premier account openings
respectively, compared with 2011. We also
appointed a Head of Coverage in Hong Kong to
strengthen our Global Banking franchise and
deliver on IPC initiatives in the region.
Strategic re-engineering to deliver sustainable
cost savings
• The successful implementation of the
organisational design we announced in 2011,
and our continued resource optimisation through
re-engineering, delivered over US$200m of
sustainable savings in 2012.