HSBC Holdings plc ( ) (lse: HSBA, sehk: 0005, nyse: HBC, , BSX: 1077223879) is a public limited company incorporated in England and Wales, headquartered in London. It is the holding company of the world's largest company, and it is the world's largest banking group

Company profile

In February 2008, HSBC was named the world's most valuable banking brand by The Banker magazine. Not known for marked fluctuations in securities exchanges around the world relative to its rivals, HSBC is more well-known in banking circles for its conservative and risk-averse approach in its business operations - a company tradition going back to the 19th century. In its technical management, however, HSBC has recently suffered a series of headline-making incidents in which some customer data were allegedly leaked or simply went missing. Although the consequences turned out to be small, the embarrassing effect on the group's image did not go unnoticed.

According to Forbes magazine, HSBC is currently the fourth largest bank in the world in terms of assets ($2,348.98 billion), the second largest in terms of sales ($146.50 billion), the largest in terms of market value ($180.81 billion), and the most profitable bank in the world with $19.13 billion in net income last year (compared to Citigroup's $3.62 billion in the same period) as of April 2, 2008.

HSBC is by far the largest bank both in the United Kingdom and in Hong Kong, prints most of Hong Kong's local currency in its own name, is a lender of last resort in many parts of the world, and since the end of 2005 has been the largest banking group in the world by Tier 1 capital.

History

HSBC Group is one of the oldest banking houses in the modern world. After the establishment of Hong Kong as a British colony in the aftermath of the Opium War, a bank was needed to finance the growing trade between China and Europe. Although the holding company, HSBC Holdings, was established in 1990 to become the parent company to The Hongkong and Shanghai Banking Corporation in preparation for its purchase of Midland Bank and a change of domicile for the transfer of sovereignty of Hong Kong, its main and foundation-laying subsidiary The Hongkong and Shanghai Banking Corporation - also known colloquially as "Hongkong Bank" before 1998 ("Hong Kong" always spelled as one word) - was established in Hong Kong and Shanghai in 1865. (The founder, a Scotsman named Thomas Sutherland, wanted a bank operating on "sound Scottish banking principles.") Today, while Hong Kong continues to be a significant source of income for the group, no single geographical area occupies a dominant earning share. In North America, however, the bank has met with reversals of fortune in recent years due to market instabilities. Other areas of future growth may include Eastern Europe and the Middle East. On the other hand, by means of acquisitions and organic expansion HSBC is working out a strategy of faster growth in booming China - returning to its roots, as it were. As Europe's biggest bank with an enormous operational base in Asia and significant lending, investment, and insurance activities around the world, HSBC apparently has a global reach and financial fundamentals matched by few other banking or financial multinationals at the present time.