HSBC Bank plc is one of the largest banking and financial services
organisations in the world. HSBC's international network comprises around
7,500 offices in over 80 countries and territories in Europe, the Asia-Pacific
region, the Americas, the Middle East and Africa.
HSBC Bank plc is one of the four major clearing banks in the United Kingdom and
is a wholly owned subsidiary of HSBC Holdings. The business ranges from the
traditional High Street roles of personal finance and commercial banking,
to private banking, consumer finance as well as corporate and investment
banking. Across all brands the bank operates some 1800 sites in the UK.
The UK headquarters of HSBC are at HSBC Tower, 8 Canada Square in the Canary
Wharf area of east London. This building is also home to HSBC Group's
headquarters, and houses some 8,000 staff over 42 floors.
HSBC Bank Plc is the only one of Britain's big five banks to hold more
deposits than loans. This has led to the bank being seen as a less risky
proposition than the other banks by investors and customers, as it is able
to fully fund its own operations. It has also contributed to the company's share
price maintaining value throughout the credit crunch, unlike other banks in the
market. Acquisition of Midland Bank
The Hongkong and Shanghai Banking Corporation acquired a 14.9 per cent
equity interest in Midland Bank in 1987, and a strong working relationship
developed. In 1992, HSBC Holdings plc acquired full ownership of Midland Bank.
It was one of the largest acquisitions in banking history, giving HSBC the
major foothold in Europe that it needed to complement its existing business in
Asia and the Americas. Midland Bank was renamed HSBC Bank in 1999 as part of the
adoption of the HSBC brand throughout the Group.
UK banking Under the HSBC brand the bank maintains
a network of around 1500 branches throughout England and Wales, with a
much smaller presence in Scotland and Northern Ireland where local banks tend
to dominate. Branches are undergoing a rolling program of refurbishment to
improve the 'retail experience' as the bank puts it, including the rebranding
of branches as 'stores' and the inclusion of more open areas for staff
to meet customers, as well as HSBC Live, a radio station specifically produced
for the bank by media company Immedia in Newbury, Berkshire.
In April 2008 HSBC launched a campaign selling mortgages. This was seen as a
risky move by media and HSBC staff due to their previous non-plus attitude
building on their 3% market share of the mortgage market. While other banks and
building societies felt the effects of the 'credit crunch', HSBC, bolstered by
a favourable savings to lending ratio, unveiled a mortgage rate matching deal
that would offer non-HSBC mortgage customers the ability to match their
current mortgage rate. The bank is due to move its headquarters
from London to Birmingham in 2017. In September 2015, the group announced
it would rebrand its UK branch network as "HSBC UK". It was previously
speculated that HSBC might revive the Midland Bank name or use the First
Direct brand for its branch network. = HSBC Amanah =
In mid-2003 HSBC became the first UK High Street lender to offer homebuying
products in compliance with Sharia law, which prohibits the charging or payment
of interest. The range now includes a bank account, home insurance policy, and
home finance. = HSBC at Morrisons =
HSBC operated a number of outlets in supermarkets owned by the Morrisons
supermarket chain, they traded as Your bank at Morrisons and offered a range of
financial services, including an exclusive credit card and savings
account. The agreement with Morrisons to provide this service expired in 2009 and
all Your Bank outlets ceased trading before the end of 2009.
Other UK operations = First direct =
In 1989 the Midland Bank launched First Direct, the pioneer of telephone
banking, with a person-to-person service available 24 hours a day, 365 days a
year. It now offers internet banking as well and serves more than one million
customers. Over its first 15 years, first direct established a position as
the United Kingdom's most recommended bank.
= HFC Bank = Household International established HFC
Bank as consumer finance business in the UK in 1973, it became one of the largest
consumer finance companies in the UK before Household was acquired by HSBC in
2003. HFC Bank provides retail credit to many leading national retailers and is
the largest point of sale loan provider in the UK. The business focuses on
retail finance through branches and direct channels, and co-branded and
loyalty credit cards. Some of the key brands are the recently relaunched
Beneficial Finance and marbles. HFC Bank has around 3.5 million customers.
= Other brands = As a result of the Household
acquisition, the UK group gained expertise allowing it to enter joint
ventures and contracts with more high street names, such as taking over Marks
and Spencer Bank on a partnership basis in 2004 and the John Lewis Partnership
Card contract. European operations
Through various acquisition deals, including some inside the HSBC Group for
reorganisational purposes, HSBC Bank plc has become the regional headquarters for
Europe. This means the lines of authority from across Europe for such
entities as HSBC France, HSBC Trinkaus, HSBC Bank Malta plc, HSBC Turkey, HSBC
Bank International and HSBC Private Bank in Europe lead to HSBC Bank plc.
= Algeria = HSBC opened in 2007. Has three bank
branches in Algiers. = Armenia =
The bank was established as a closed joint stock company under the name
Midland Armenia Bank J.S.C. on 1996 and has been renamed into HSBC Bank Armenia
cjsc on 1999. The bank is a joint venture between the HSBC Group, which
has a 70% ownership, and members of overseas Armenian businesses with 30%
ownership. It is one of the leading banks in the foreign exchange market.
HSBC Bank Armenia cjsc offers a wide range of products and services to
individual as well as corporate customers in Armenia and abroad. The
bank is the member of SWIFT and Bankmail payment systems.
= Czech Republic = HSBC Bank plc is undertaking a
significant expansion in Eastern and Central Europe, with the Czech Republic
the first country to offer Personal Financial Services. The operations are
focused on HSBC Premier. = France =
HSBC France has operated around 800 branches in France since the takeover of
Credit Commercial de France, primarily operating under the HSBC brand. HSBC
France is now the HSBC Group’s lead bank in the Eurozone, focusing on certain
capital market products for a global audience, and high-net-worth and
international business in France. = Georgia =
HSBC Bank Georgia opened its doors for business in Tbilisi in June 2008. HSBC
Bank Georgia jsc is a locally licensed joint venture between the HSBC Group,
which has 70% ownership, and members of overseas businesses who hold 30%.
= Germany = HSBC Trinkaus & Burkhardt AG was founded
in 1785 and is one of the longest-established members of the HSBC
Group. It has operations in private, commercial and investment banking and
asset management. = Ireland =
HSBC Bank plc and a number of subsidiaries have operations in
insurance, reinsurance, securities services and a newly established
consumer finance business. The fund management business had assets in excess
of US$20bn as of 2006. = Malta =
HSBC Bank Malta plc is the largest bank in Malta. It is a listed company but its
majority shareholder is the HSBC Group. Formerly the "Mid-Med Bank", HSBC Bank
Malta is the second-longest established bank in Malta.
= Switzerland = HSBC Private Bank is the Swiss operating
subsidiaries of the group's Private Banking business, with 20 locations in
the country. Much of the private banking business takes a lead from work done in
Switzerland, with a total of 74 locations around the world operating
solely for private banking business. = Turkey =
HSBC Bank A.S. is now the fifth largest private bank in Turkey, having expanded
through internal financing and via acquisition since entering the market in
1990. The bank has a network of around 336 branches, offering products and
services to corporate, commercial and personal customers, both under the HSBC
brand as well as the Advantage brand. Controversy
= Withdrawal of graduate overdrafts = In July 2007, HSBC suddenly withdrew its
interest-free overdrafts for graduates. Students graduating that year discovered
that they were to face unexpected bills of up to £140 a year. Students mobilised
protests using the social networking website Facebook and in August HSBC
reversed their policy, freezing overdraft charges to recent graduates
and pledging to repay charges deducted in August while holding talks with the
National Union of Students. = Data loss =
In April 2008 HSBC confirmed the loss of unencrypted data disks containing life
insurance policy details for 370,000 customers. In February 2011 HSBC sent a
letter dated February 11 to an unknown number of recipients, stating that they
were "writing to inform you of the potential compromise of some of your
former account information with us." The date and extent of the loss were not
given; however, HSBC offered a year's enrollment to ITAC Sentinel and advised
vigilance for 12 to 24 months, as well as recommending contacting the three
major Credit Bureaus to place a Fraud Alert on the credit profile.
= Cultural insensitivity = In 2008 HSBC were accused of 'cultural
insensitivity' in an advertising campaign featuring an overweight white
man dressed to look like a Sumo wrestler. The campaign upset members of
Britain's Japanese community who claimed the man's skin tone was darkened and
makeup was applied to narrow his eyes. HSBC denied making the model appear to
be from a specific country or region but admitted makeup was applied and skin
tone was tanned. = Links to the arms trade =
In December 2008 the British anti-poverty charity War on Want
released a report documenting the extent to which HSBC and other UK commercial
banks invest in, provide banking services for and make loans to arms
companies. The charity writes in its report that HSBC holds shares in the
global arms industry totalling £450.6 million, and serves as principal banker
for Meggitt, one of the UK's largest arms companies. The report also details
HSBC's dealings with known producers of cluster munitions and depleted uranium.
= Closing Muslim clients', organisations' and mosque's accounts =
In 2014 HSBC closed North London Central Mosque's account and some Muslim
clients' and groups' accounts. Several sources report that HSBC closed them
because they donated their money to Palestine during the recent conflict.
See also HSBC Bank International
Midland Bank plc References
External links First Direct
HSBC Bank Armenia HSBC Bank UK
HSBC France HSBC Poland
HSBC Group HSBC Private Bank
HSBC Bank International