1

Who is HSBC?.................................................................................................................4 Our principles and values.....................................................................................................4 2006.................................................................................................................................7 2005.................................................................................................................................8 2004................................................................................................................................. 200!................................................................................................................................. 2002...............................................................................................................................10 2001...............................................................................................................................10 2000...............................................................................................................................10 "roup #rchives..................................................................................................................11 HSBC His$or% Wall...........................................................................................................1! &earnin' $o (alance $he (oo)s...................................................................................1! "roup s$ruc$ure..................................................................................................................1! #*ards and ran)in's..........................................................................................................14 Sponsorship........................................................................................................................18 HSBC "ol+ sponsorship................................................................................................18 HSBC Cul$ural sponsorship pro'ra,............................................................................18 Hu,an -esources .........................................................................................................18 HSBC Hu,an -esources .ision...............................................................................18 HSBC Hu,an -esources /ission.............................................................................1 0rainin'..........................................................................................................................1 Scholarships...................................................................................................................1 -adia$ion........................................................................................................................20 1,plo%ees recrui$,en$ process.....................................................................................20 #ppoin$,en$..................................................................................................................20 ......................................................................................................................................20 1,plo%ee -ecord2s........................................................................................................20 3ro(a$ion.......................................................................................................................21 Con+ir,a$ion..................................................................................................................21 0rans+er..........................................................................................................................21 ......................................................................................................................................22 0er,ina$ion o+ 1,plo%,en$..........................................................................................22 -esi'na$ions...................................................................................................................22 Ou$ Sourcin' .................................................................................................................22 Co,,unica$ion..................................................................................................................24 4e*sle$$ers.................................................................................................................24 1,plo%ee hand(oo)...................................................................................................24

S$ra$e'ic co,,unica$ion...........................................................................................24 .ideo5,edia$ed co,,unica$ion 6./C7...................................................................24 Or'ani8a$ional 1nviron,en$..............................................................................................24 19$ernal :ac$ors.............................................................................................................25 Social :ac$or..............................................................................................................25 1cono,ical................................................................................................................25 3oli$ical;le'al co,ponen$...........................................................................................25 <n$ernal :ac$ors..............................................................................................................25 Wor)in' environ,en$................................................................................................25 1,plo%ees2 ,orale....................................................................................................26 Or'ani8a$ional Cul$ure ..............................................................................................26 Bio'raphic charac$eris$ics..............................................................................................26 #(ili$% 6ph%sical and in$ellec$ual7.................................................................................26 3ersonali$% and =o(........................................................................................................27 /ana'in' 1,o$ion a$ *or)...........................................................................................27 &earnin'.........................................................................................................................27 <,por$ance o+ a$$i$ude> values and =o( sa$is+ac$ion.......................................................28 1,plo%ee2s ,o$iva$ion..................................................................................................28 Co,pensa$ion............................................................................................................28 0ea, ,ana'e,en$.........................................................................................................28 3o*er and poli$ics in or'ani8a$ion................................................................................2 3o*er.........................................................................................................................2 3oli$ics........................................................................................................................2 Con+lic$> ne'o$ia$ions and in$er 'roup (ehavior............................................................2 Or'ani8a$ional chan'e and s$ress ,ana'e,en$.............................................................!0 Wor) s$ress and i$s ,ana'e,en$...................................................................................!0 -eco,,enda$ions..............................................................................................................!0

Who is HSBC?
We are the world's local bank. Headquartered in London, HSBC is one of the largest banking and financial services organizations in the world. HSBC's international network co !rises over "#,### offices in $% countries and territories in &uro!e, the 'sia()acific region, the ' ericas, the *iddle &ast and 'frica. With listings on the London, Hong +ong, ,ew -ork, )aris and Ber uda stock e.changes, shares in HSBC Holdings !lc are held b/ around 0##,### shareholders in so e "## countries and territories. 1he shares are traded on the ,ew -ork Stock &.change in the for of ' erican 2e!ositar/ 3ecei!ts. 1hrough an international network linked b/ advanced technolog/, including a ra!idl/ growing e(co erce ca!abilit/, HSBC !rovides a co !rehensive range of financial services4 !ersonal financial services5 co ercial banking5 cor!orate, invest ent banking and arkets5 !rivate banking5 and other activities.

Our principles and values

1he HSBC 6rou! is co

itted to five core business !rinci!les4

outstanding custo er service5 effective and efficient o!erations5 strong ca!ital and liquidit/5 !rudent lending !olic/5 strict e.!ense disci!line5

7ur business !rinci!les are su!!orted b/ lo/al and co itted e !lo/ees who ake lasting custo er relationshi!s and international tea work easier to achieve. HSBC also o!erates according to certain ke/ business values4 4

the highest !ersonal standards of integrit/ at all levels5 co it ent to truth and fair dealing5 hands(on anage ent at all levels5 co it ent to qualit/ and co !etence5 a ini u of bureaucrac/5 fast decisions and i !le entation5 !utting the tea 8s interests ahead of the individual's5 the a!!ro!riate delegation of authorit/ with accountabilit/5 fair and ob9ective e !lo/er5 a diverse tea under!inned b/ a eritocratic a!!roach to recruit ent:selection:!ro otion5 a co it ent to co !l/ing with the s!irit and letter of all laws and regulations wherever we conduct our business5 the e.ercise of sustainabilit/ through detailed assess ents of lending !ro!osals and invest ents, the !ro otion of good environ ental !ractice and sustainable develo! ent, and co it ent to the welfare and develo! ent of each local co unit/.

HSBC8s re!utation is founded on adherence to these !rinci!les and values. 'll actions taken b/ a e ber of the HSBC 6rou! or staff e ber on behalf of a 6rou! co !an/ should confor with the !rinci!les and values. 'dditionall/, we have codes of conduct for staff in all o!erations. *an/ areas of sustainabilit/ !rovide o!!ortunities to collaborate with other financial services organizations through international co it ents to establish best !ractice. History of branding HSBC Holdings !lc is one of the largest banking grou!s in the world, ranked the fifth(largest co !an/ and third(largest banking co !an/ in the world in ;orbes 6lobal 0###. <ts head office is located in the HSBC 1ower in London's Canar/ Wharf. 1he grou! is na ed after its founding e ber, the Hong Kong and Shanghai Banking Corporation, a bank established by Tho as Sutherland, a Scot, to finance British trade in the !ar "ast in #$%&' 1he bank is the largest cor!oration in the world in ter s of assets ='s of >un %#, ?".@A trillion while Citigrou! re!orted ?".B% trillionC. <t re!orts its results in Dnited States dollars since $#E of its earnings originate fro outside the (nited Kingdo ' )early **+ of its earnings are fro operations in Hong Kong, ,here it ,as head-uartered until #..#' /t is the largest bank in Hong Kong, and at the end of *001 it ,as the third largest banking group in the ,orld by Tier # capital' 1he HSBC logo, known as the He.agon, is derived fro the Hong Kong and Shanghai Banking Corporation2s #.th century house flag, itself derived fro the Scottish flag ,hich is the angular cross that Saint 3ndre, 4the patron saint of Scotland5 ,as crucified upon'

's of 0##F *ichael 6eoghegan, the co !an/'s C&7, was earning over G@##,###.## =over " illion DS dollarsC !er /ear, and the chair an Sir >ohn Bond, who retired in 0##B, was earning ".$ illion DS dollars. HSBC ade record !rofits in the 0##A(0##F /ear earning over "0 billion 6B) or ore than 0# billion DS dollars.

6roup history 0##@ was a /ear of challenges for HSBC. 1he weakness in the ' erican !ro!ert/ arket affected its DS subsidiar/, HSBC ;inance Cor!oration, and in ;ebruar/ the bank issued a trading state ent to warn investors about the i !act of bad debts. *an/ other banks follow suit and b/ the end of the /ear HSBC is winning !laudits for its earl/ announce ent and !rudent handling of the situation. <n a strategic review of its consu er and ortgage lending businesses, the bank announces the closure of 2ecision 7ne, its sub(!ri e ortgage loans wholesale channel. &lsewhere, HSBC continues to e.!and its business in ke/ arkets and through ke/ !roducts. <n '!ril, the bank officiall/ incor!orates in China and the chair an announces the intention to 'significantl/ invest in and develo! our business in the countr/.' B/ the end of the /ear HSBC is o!erating fro F% outlets in the countr/ H u! fro %I H and is the first foreign bank to receive !er ission to o!en a branch in rural China. Se!te ber sees the official launch of HSBC )re ier H the world's first trul/ global banking service H which is soon dubbed '1he world's local bank account.'

HSBC continues its long(standing engage ent with the environ ental agenda when it launches the HSBC Cli ate )artnershi! in *a/. 1his five(/ear, DS?"## !ro9ect ai s to tackle the causes and i !act of cli ate change. 1he bank also a!!oints ,icholas Stern to the !ost of s!ecial advisor on &cono ic 2evelo! ent and Cli ate Change. 1he bank's !rinci!les are !ut into !ractice to good effect in its new HJ in *e.ico which wins 6old awards for its environ ental design, construction and o!eration. 1his is 9ust one of an/ awards that HSBC receives throughout the /ear ( others include 'sia's to! retail bank and the Best <nternational <sla ic Bank. Both looking back, and looking forward, HSBC announces during the /ear that it has co issioned a new histor/ of the bank to be !ublished in 0#"F to coincide with the bank's "F#th birthda/.

*00%
0##B was a /ear of develo! ent and change for HSBC. Strategic acquisitions throughout the /ear increased arket share and custo er nu bers es!eciall/ in the ' ericas. <n ;ebruar/ HSBC Latin ' erica Holdings =D+C Li ited entered an agree ent to acquire the a9orit/ of Llo/ds 1SB8s branch assets in )aragua/, and this was quickl/ followed b/ the acquisition in *arch of a stake in ;inanciera <nde!endencia ( one of *e.ico8s leading co !anies in the sub(!ri e consu er loans arket with over "## offices throughout the countr/. <n ,ove ber, the bank entered fresh !astures with the !urchase of 6ru!o Banist o. 1his banking grou!, based in )ana a, gave the bank access to the arkets of Colo bia, Costa 3ica, &l Salvador, Honduras and ,icaragua for the first ti e in its histor/.

HSBC continued to focus on the develo! ent of its !ersonal financial services business in 'sia es!eciall/ in China where the bank was able to offer a new 3*B de!osit service to do estic custo ers. Business custo ers also benefited with the launch of the <nternational Business Centers which facilitate S*&s around the world with their cross border trading. Cli ate change and environ ental issues re ained i !ortant to HSBC during the /ear. &ight thousand bins were re oved fro HSBC8s head office in >une as !art of the !rogra to reduce the a ount of waste sent to landfills b/ $E b/ the end of 0##@. <n >une HSBC signed u! to the D, !rinci!les for res!onsible invest ent and was also na ed the winner in the first ;1 Sustainable Banking 'wards. <n *a/ HSBC bid farewell to Sir >ohn Bond, and welco ed Ste!hen 6reen as 6rou! Chair an.

*00&

<n 0##F, HSBC increasing its stake in the countr/.

arked "A# /ears in China b/

1he 6rou! o!ened new branches in Chongqing and Chengdu in the west of the countr/ and in *arch beca e the first foreign bank to !rovide local currenc/ services fro its branch in Bei9ing.

HSBC began selling insurance through )ing 'n <nsurance, China8s second largest life insurer, and increased its stake in the co !an/ to "I.IE. <n ,ove ber, HSBC was the title s!onsor of the inaugural HSBC Cha !ions golf tourna ent in Shanghai. <n the *iddle &ast, HSBC reo!ened its branch in +uwait, while in the DS, the integration of Household <nternational with the 6rou!8s ,orth ' erican o!erations was co !leted, under the na e KHSBC ;inance Cor!oration8. HSBC continued to tackle the issues of cli ate change, and reducing the social and environ ental i !act of its o!erations. <n 7ctober, it beca e the first a9or bank to go carbon neutral, and in *a/ and 'ugust, !ublished sector guidelines governing its activities in the freshwater infrastructure and che icals industries. <n 0##F, HSBC !ublished the world8s ost co !rehensive surve/ of global attitudes to ageing and retire ent, while in ,ove ber, Sir >ohn Bond, HSBC Chair an since "I$$, announced he is to retire in *a/ 0##B.

*001
HSBC grew organicall/ and through strategic acquisitions in 0##A. 1he Bank of Ber uda 9oined the 6rou! in ;ebruar/ and inorit/ stakes were acquired in <ndia8s D1< Bank and China8s Bank of Co unications Ltd. <n the D+, HSBC bought the retail financial services ar of the *arks and S!encer 6rou!. 1he HSBC brand was ado!ted b/ its *e.ican subsidiar/, 6 ; Bital, earl/ in the /ear and in Se!te ber the a9orit/ of the bank8s ,orth ' erican businesses, including Household <nternational, were united under the na e HSBC ,orth ' erica. HSBC continued its long(standing co it ent to the environ ent, beco ing a founder e ber of the Cli ate 6rou! in '!ril and announcing its intention in 2ece ber to beco e the first a9or bank to go carbon neutral.

*007

<n '!ril, the new 6rou! head office in Canar/ Wharf in London officiall/ o!ened to house so e $### staff. HSBC's !urchase of Household <nternational <nc. added substantiall/ to the 6rou!'s business and !rofile in the Dnited States5 Household8s network of over "%## branches in AF states !rovided consu er finance to F% illion custo ers. <n ;rance CC; agreed to increase its stake in ;rench !rivate bank Banque &urofin S.'. to $%.IF !er cent and to acquire two further branches of Banque Wor s. HSBC also acquired +e!HSBC <nsurance )te Ltd, a !rovider of life insurance and <sla ic insurance in Singa!ore5 and took full ownershi! of &quator Holdings Ltd.

*00*
;ro 0##0, the HSBC identit/ carried the stra! line of '1he world's local bank', e !hasizing the 6rou!'s e.!erience and understanding of a great variet/ of arkets and cultures. 1he 6rou! also began its five(/ear '<nvesting in ,ature' !rogra , a !artnershi! in environ ental !ro9ects with &arth watch, WW; and Botanic 6ardens <nternational. HSBC acquired and reca!italized 6rou! ;inanciero Bital in *e.ico at a total cost of DS?".I billion. 1his new e ber of the 6rou! brought F.F illion new custo ers and ",A## branches in to the network. &lsewhere, HSBC acquired a "# !er cent share of )ing 'n <nsurance Co !an/ of China, the second largest life insurance o!erator in the countr/.

*00#
)urchases during the /ear included the ,3*' Building Societ/ Li ited in 'ustralia, 2e irbank of 1urke/ and a I@ !er cent interest in China Securities <nvest ent 1rust Cor!oration, 1aiwan8s leading asset anage ent co !an/. <n 2ece ber, the bank also took an $ !er cent share in the Bank of Shanghai which was established in "IIF and o!erates a network of al ost 0## branches in the cit/. 0##" also saw the o!ening of the onl/ branch in the HSBC network that is o!en %BF da/s a /ear ( in )une in Western <ndia.

*000

10

<n '!ril, HSBC announced a DS?"" billion reco ended offer for Credit Co ercial de ;rance =CC;C. &stablished in "$IA, CC; brought into the 6rou! a network of BF# branches in ;rance and long e.!erience of !ersonal, cor!orate, invest ent and !rivate banking, greatl/ strengthening HSBC8s !resence in the euro zone. 1he deal was co !leted in >ul/ and in that onth HSBC Holdings !lc was listed on the )aris Stock &.change for the first ti e. 2uring the /ear HSBC launched HSBC )re ier, a new international service for HSBC8s ost valuable !ersonal custo ers.

6roup 3rchives

Who ,e are
Located in London, HSBC 6rou! 'rchives are a ong the ost i !ortant and heavil/ used bank archives in the world. 1he archivists are res!onsible for the 11

collection and anage ent of the records, which s!an of financial and international histor/.

ore than two centuries

What ,e hold
1he archives contain historical records fro odern HSBC 6rou!. 6rou! 'rchives cover4

an/ of the banks that

ake u! the

1he Hong +ong and Shanghai Banking Cor!oration Li ited =u! to "II%C HSBC Bank !lc =for erl/ *idland Bank !lcC HSBC Bank *iddle &ast Li ited =for erl/ 1he British Bank of the *iddle &astC *ercantile Bank of <ndia

1/!es of records include4

Board inute books 'nnual re!orts Staff records )hotogra!hs of branches, staff and local scenes 'dvertise ents and !ro otional videos

8esearchers and research topics

1he archives are used b/ a range of researchers for various !ur!oses. Co on categories of researcher include4 econo ic and social historians5 universit/ and college students5 genealogists5 architectural researchers5 local historians5 television and fil co !anies5 and bank staff. 1he archivists are able to carr/ out research in res!onse to s!ecific enquiries. 1/!ical questions include4

*/ grandfather worked for the bank. Can /ou give his careerL How long has HSBC been o!erating in *ala/siaL

e an/ details about

12

When did *idland Bank beco e !art of the HSBC 6rou!L Can /ou !rovide i ages for !ublications and fil !roductionsL Can /ou tell e ore about the histor/ of / local branchL

HSBC History Wall

HSBC has been both a !ioneer and !illar of banking in around the world and is ver/ !roud of its histor/. an/ co unities

' visual record of the 6rou!'s histor/, the Histor/ Wall, was develo!ed for the 6rou!'s headquarters in London. 1hrough %,@A% i ages, the Histor/ Wall ca!tures HSBC's rich and fascinating !edigree. 7n this !age /ou can e.!lore so e of HSBC's histor/ in !ictures.

9earning to balance the books

's su er arrives, so it ushers in the e.a season. 7ur new selection of i ages fro the Histor/ Wall looks at the training of bankers and financial education.

6roup structure
HSBC Holdings is a !ublic li ited co !an/ incor!orated in &ngland and Wales. Headquartered in London, the HSBC grou! o!erates in five regions4 &uro!e5 Hong +ong5 the rest of 'sia )acific5 including the *iddle &ast and 'frica5 ,orth ' erica5 and South ' erica. 1he entities which for the HSBC 6rou! !rovide a co !rehensive range of financial services to !ersonal, co ercial, cor!orate, institutional and invest ent, and !rivate banking clients. 1o ore easil/ !ro ote the 6rou! as a whole, HSBC was established as a unifor , international brand na e in "III. <n 0##0, HSBC launched a ca !aign to differentiate its brand fro those of its co !etitors b/ describing the unique characteristics which distinguish HSBC, su arized b/ the words '1he world's local bank'. 3eferences to HSBC on this website refer to the HSBC 6rou! of discrete legal entities, each of which is wholl/ or !artl/ owned b/ HSBC Holdings !lc. HSBC8s largest and best(known subsidiaries and their !ri ar/ areas of o!eration are4 Subsidiary 1he Hong +ong and Shanghai Banking Cor!oration Li ited Hang Seng Bank :ri ary area of operation Hong +ong S'3, with an e.tensive network throughout 'sia()acific. Hong +ong S'3

1!

Subsidiary Li ited HSBC Bank !lc HSBC ;rance Household <nternational, <nc. HSBC Bank DS' ,.'. HSBC Bank Brazil S.'.( Banco *Mlti!lo HSBC )rivate Banking Holdings =SuisseC S.'. HSBC Bank L12

:ri ary area of operation Dnited +ingdo ;rance DS ,ew -ork State in the DS Brazil Switzerland, Hong +ong S'3, *onaco, Lu.e bourg, Dnited +ingdo , Singa!ore and the Channel <slands. )akistan

3,ards and rankings

;onth >ul/ 0##$ >ul/ 0##$ ;ebruar/ 0##$ 7ctober 0##@ >ul/ 0##@ >ul/ 0##@ *a/ 0##@ Co pany < "ntity 1o! World Bank HSBC HSBC 6lobal Best & erging *arkets Bank *arkets Best <nternational <sla ic HSBC 6lobal Bank *arkets <nterest 3ate 2erivatives HSBC 6lobal House of the -ear *arkets HSBC 6lobal Best Cash *anage ent 1ransaction House Banking HSBC 6lobal Best 3isk *anage ent House *arkets 3anked nu ber " ( Who's HSBC 6lobal best whereL ( 'sia N *iddle *arkets &ast Best for currencies ( Hong +ong dollar, Chinese -uan, HSBC 6lobal *iddle &astern currencies, *arkets 'sian currencies, DS?:G 3,ard 14 Body < :ublication 1he Banker &uro &uro one/ one/

1he Banker &uro &uro one/ one/

&uro one/ ;oreign &.change )oll &uro one/ ;oreign &.change )oll

*a/ 0##@

;onth ;ebruar/ 0##@ ;ebruar/ 0##@ ;ebruar/ 0##@ ;ebruar/ 0##@ ;ebruar/ 0##@ ,ove ber 0##B ,ove ber 0##B 7ctober 0##B >ul/ 0##B >une 0##B >une 0##B

Co pany < "ntity Best <nternational <sla ic HSBC Bank ' anah HSBC Best Sukuk House ' anah HSBC Best )ro9ect ;inance House ' anah HSBC Best )ro9ect ;inance 2eal ' anah HSBC Best Sukuk 2eal ' anah 6lobal Cash N Working HSBC 6lobal Ca!ital *anage ent Bank of 1ransaction the -ear Banking Best Consu er <nternet Bank HSBC ( 6lobal HSBC 6lobal ;irst !lace in <nternational 1ransaction Cash *anage ent )oll Banking HSBC 6lobal Best Sub(Custodian 1ransaction Worldwide Banking HSBC Best Cor!orate governance Holdings !lc 7verall winner ;1 Sustainable HSBC Banking 'wards 3,ard

Body < :ublication &uro one/ <sla ;inance 'wards &uro one/ <sla ;inance 'wards &uro one/ <sla ;inance 'wards &uro one/ <sla ;inance 'wards &uro one/ <sla ;inance 'wards ic ic ic ic ic

1reasur/ *anage ent <nternational 6lobal ;inance agazine &uro one/

6lobal ;inance agazine <3 agazine D+ 'wards 0##B ;inancial 1i es

1i es 6raduate HSBC 3ecruit ent 'wards 0##B Best Consu er <nternet Bank World's Best <nternet ,ove ber Best Cor!orate : <nstitutional HSBC Banks 0##F, 6lobal 0##F <nfor ation Securit/ <nitiatives ;inance *agazine 7ctober ,o. 0 cash anage ent &uro one/ Cash HSBC 0##F !rovider globall/ *anage ent Surve/ 7ctober HSBC )ro9ect 2ialogic )ro9ect Best 6lobal ;inancial 'dviser 0##F ;inance ;inance league table 7ctober ,o. A 6lobal *andated Lead HSBC &.!ort 2ialogic &.!ort 0##F 'rranger ;inance ;inance league table 7ctober ,o. 0 6lobal *andated Lead HSBC &.!ort 2ialogic &.!ort 0##F 'rranger =&C' backedC ;inance ;inance league table Se!te ber HSBC 6lobal Bank of the -ear 1he Banker *agazine 0##F Holdings !lc >une 0##F Best cor!orate governance HSBC <3 agazine D+ & !lo/er of Choice for '!ril 0##B ;inance

15

Co pany < "ntity Holdings !lc HSBC >une 0##F Best disclosure !ractice Holdings !lc HSBC Best global sub(custodian >une 0##F Securities 'sia, *iddle &ast, Caribbean Services ;onth 3,ard *ar 0##F *ar 0##F *ar 0##F ;eb 0##F >anuar/ 0##F ;ifth largest co !an/ in the world Best <sla ic Wholesale Bank Best for <sla ic )rivate Banking Services 6lobal *ost 'd ired Co !anies ( ranked A#th 1o! *ortgage Lender HSBC Holdings !lc HSBC ' anah HSBC ' anah HSBC Holdings !lc HSBC HSBC Holdings !lc

Body < :ublication 'wards 0##F <3 agazine D+ 'wards 0##F 6lobal ;inance agazine 1he world's 0,### biggest co !anies ( ;orbes agazine &uro one/8s <sla ic ;inance 'wards 0##F &uro one/8s <sla ic ;inance 'wards 0##F ;ortune agazine's '1he world's ost ad ired co !anies' *one/ facts 6lobal ;inance, World's Best Banks 0##A

,ove ber Best Consu er Bank 0##A Se!te ber 6lobal Bank of the -ear 0##A

HSBC 1he Banker *agazine Holdings !lc HSBC &uro one/ 'wards >ul/ 0##A World's Best Bank Holdings !lc for &.cellence 0##A HSBC &uro!e's Best C;7s, >une 0##A Best &uro!ean C;7 =BankingC Holdings !lc <nstitutional <nvestor =2ouglas ;lintC 1he &uro!ean &uro!e's F# Best )erfor ing HSBC >une 0##A Business Week F#, Co !anies, ranked Fth Holdings !lc Business Week World's 0,### Biggest HSBC World's Largest *a/ 0##A Co !anies, ranked @th Holdings !lc Co !anies, ;orbes 3anked @th of world's leading HSBC '!ril 0##A ;orbes 0### co !anies Holdings !lc HSBC ;ebruar/ Best international !rovider of ' anah &uro one/ 0##A <sla ic ;inancial Services ;inance HSBC ;ebruar/ Best international Sukuk ' anah &uro one/ 0##A =<sla ic BondC !rovider ;inance >anuar/ 3anked A"st *ost 3es!ected HSBC ;1 : )ricewaterhouse

16

;onth 0##A >anuar/ 0##A

3,ard

Co !an/ in the world 3anked 0Fth *ost 3es!ected HSBC Co !an/ in the World for Holdings !lc creating Shareholder Oalue HSBC

Co pany < Body < :ublication "ntity Holdings !lc Coo!ers ;1 : )ricewaterhouse Coo!ers Laffert/ 3etail Banking 'wards Chartered <nstitute of *anage ent 'ccountants' 'nnual 'wards &uro one/8s 'nnual Cash *anage ent )oll 0##% 1he World's Best Banks, 1he Banker agazine 1he Business Week 6lobal "###, Business Week 1he ;orbes 6lobal 0###, ;orbes agazine 1o! "### world banks, 1he Banker <nterbreeds World's *ost Oaluable Brands, Business Week agazine 1o! "### Co ercial Banks b/ Countr/, 1he Banker 2igital ;Q 'wards, )rofit and Loss agazine 1he World's *ost 'd ired Co !anies, ;ortune agazine 1he World's *ost 'd ired Co !anies, ;ortune agazine 1he World's *ost 'd ired Co !anies, ;ortune agazine

,ove ber 3etail Bank of the -ear 0##% 0##%

,ove ber Business Leader of the -ear ( HSBC 0##% 2ouglas ;lint, C;7 Holdings !lc ,ove ber 3anked 0nd best Cash 0##% *anage ent bank globall/ Se!te ber Best 6lobal Bank 0##% >ul/ 0##% >ul/ 0##% >ul/ 0##% >ul/ 0##% HSBC Holdings !lc HSBC Holdings !lc

3anked "Ath in the world, third HSBC largest in Britain Holdings !lc 3anked Ith in the world 3anked 0nd b/ ca!italization 3anked %@th brand arket ost valuable HSBC Holdings !lc HSBC Holdings !lc HSBC Holdings !lc

>ul/ 0##% *a/ 0##% *arch 0##%

3anked "st in D+ b/ 1ier 7ne HSBC ca!ital Holdings !lc Best 3esearch 1ools and Best ,avigation =for HSBC arketsPhsbc.co C 3anked F#th ost ad ired co !an/ in the world HSBC Holdings !lc HSBC Holdings !lc HSBC Holdings !lc

3anked 0nd ost ad ired *arch 0##% co !an/ in the world b/ industr/ ( *ega banks *arch 0##% D+'s Ath ost ad ired co !an/

17

;onth >anuar/ 0##%

3,ard 3anked Fth for ;inancial Services in 0##0

Co pany < "ntity HSBC Holdings !lc

Body < :ublication World's *ost 3es!ected Co !anies, ;inancial 1i es

Sponsorship HSBC 6olf sponsorship

HSBC's s!onsorshi! of the ga e of golf is global in its reach !ossessing a !ortfolio of !rofessional tourna ents which include4 HSBC World *atch )la/ in the D+, HSBC Wo en's World *atch )la/ in the DS' and Cha !ions in China. HSBC has a to! to botto a!!roach to golf s!onsorshi! which is evident in its su!!ort of HSBC ' ateur *atch )la/ and HSBC Wee Wonders in the D+ and golf at grassroots level in both the DS' and China. ore about the HSBC 6olf s!onsorshi!...

HSBC Cultural sponsorship progra

HSBC8s cultural s!onsorshi! !rogra is focused around Kcultural e.change8. 's the world8s local bank we want to encourage and !ro ote the understanding of different cultures across the world. 1hrough HSBC8s global cultural s!onsorshi! !rogra we will su!!ort innovative !ro9ects that !ro ote international understanding.

Hu an 8esources
We are !leased that /ou have visited our website and considering furthering /our career with us and ho!e /ou'll take the ti e to know HSBC better b/ selecting one of the new features we have included here.

HSBC Hu an 8esources =ision

1he HSBC H3 2e!art ent ai s to work together in a strategic !artnershi! with line anagers, creating the best !ossible working environ ent to attract, develo!, otivate and retain the highest caliber staff in !ursuit of the achieve ent of HSBC8s goals N initiatives.

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HSBC Hu an 8esources ;ission

1o create a strategic balanced !artnershi! between HSBC's H3 de!art ent and the line, establishing the a!!ro!riate !erfor ance, co !ensation, develo! ent and retention !olicies N !ractices to further enhance HSBC8s financial !erfor ance, creating the a.i u value for our shareholders We ho!e /ou will find our website infor ative and useful. ;inall/, we e.tend our invitation to qualified Saudis and call u!on the to 9oin HSBC8s offerings of !rofessional career in Banking <ndustr/.

Training
HSBC has ade a significant invest ent in develo!ing and aintaining a high qualit/ training !rogra ed for its staff. 2uring the /ear 0##F, AF0F individuals attended 0#A#@ da/s of internal and e.ternal training including e.ternal se inars and worksho!s, with an average of nine training da/s !er e !lo/ee !er /ear.

1raining is conducted in HSBC's dedicated training facilities in the western and eastern )rovinces of Saudi 'rabia as well as at HSBC's headquarters in 3i/adh. S'BB training is considered to be a ongst the best available in the Saudi banking industr/. S'BB continuall/ reviews its training resources against the current and future needs of the business. 'dvantage is taken for HSBC 6rou!'s training resources both in the D+ and D'&. HSBC has invested significant ti e and resources in brining new and e.isting e !lo/ees u! to the highest standard in all areas of HSBC's business and this !rocess is ongoing. )articular attention has been given to custo er anage ent skills, focusing on service and cross(selling techniques. 1he accreditation !rogra ed for front line staff, which was introduced in 0##%, has continued in 0##A with value being added fro the develo! ent and roll(out of s!ecific follow( u! Sales and Service !rogra ers.

Scholarships
HSBC was the first Saudi co !an/ to introduce in "II@ an educational !rogra H HSBC Scholarshi! Sche e ( enabling Saudis to obtain higher education in the D+. Since then S'BB invites a!!lications for scholarshi!s under the S'BB Scholarshi! Sche e fro candidates wishing to !ursue *B' courses in the D+. 1he Sche e is o!en to all Saudi ale and fe ale graduates between 0$ H%F /ears with degrees fro recognized universities who wish to 9oin for higher studies to i !rove their long(ter career !ositions. 1

1his Sche e is one of the ost !ro inent sche es to serve the co unit/ since HSBC !rovides the tuition fees, acco odation and living e.!enses, travel allowance and a dail/ allowance for the selected candidates. 1ill now, 1& Saudis ( % of the are ladies ( have been !rovided with scholarshi!s under the Sche e b/ HSBC.

8adiation
't HSBC, we activel/ su!!ort the )akistani 6overn ent8s !olic/ of increasing the !ercentage of )akistani nationals in our workforce. 1o hel! us achieve this goal, we have set u! three s!ecialist recruit ent centers o!erating training courses for )akistani graduates fro universities, colleges, institutes and high schools, as well as for bank staff with !roven !erfor ance records. 7ur training courses are considered to be a ong the best in the sector and have hel!ed us achieve our ai . 1he !ercentage of )akistani staff e !lo/ed b/ HSBC has grown fro A@E in "II# to $0."%E in 2ece ber 0##A.

" ployees recruit ent process 3ppoint ent

'n a!!oint ent to the service of the HSBC is effective when the successful a!!licant has4 . Confir ed acce!tance of our offer of e !lo/ ent b/ returning the said offer, dul/ signed. Certified, b/ having signed on our a!!lication for !rovided there in is true and correct. that the infor ation 1he required degree which suits the 9ob

)rovided necessar/ docu entation as required b/ the Co !an/.

" ployee 8ecord2s

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&ach e !lo/ee required to sub it !ersonal infor ation as required b/ the co !an/ for its e !lo/ee record, the e !lo/ee ust infor H32 if there are an/ changes in an/ of the following4 ,a e of the e !lo/ee ,a e and birth dates of Children *arital status 2eath:Birth of s!ouse or children 3esidential address and tele!hone nu bers )rofessional : education qualifications of e !lo/ee )erson to be notified in case of illness or in9ur/ or e ergenc/ ,a es of ne.t kin *e bershi! in !rofessional organization, Societies or cor!orations )eriodic u!date:verification b/ e !lo/ee

:robation
& !lo/ees shall serve a !robationar/ !eriod of three onths or such longer !eriod as dee ed necessar/ b/ the Co !an/. <n certain cases, and at the discretion of the &O) <1:7)S, the !robation !eriod a/ be shortened or waived altogether. 1his !eriod can also be e.tended in case of unsatisfactor/ work !erfor ance.

Confir ation
1he Su!ervisor will sub it the !robation evaluation for to H32 with his:her satisfactor/ re arks. H32 head will confir the e !lo/ee based on su!ervisor8s re!ort. D!on satisfactor/ co !letion of the !robationar/ !eriod, the a!!oint ent shall be confir ed in writing.

Transfer
Where and when circu stances required the co !an/ reserves the right to de!lo/ transfer, reallocation or outsource duties other then sti!ulated in the letter of e !lo/ ent. 1he Co !an/ also reserves the right to relocate an/ e !lo/ee to an/ of its internal 1ea :2e!art ent or an/where in the international network:offices:subsidiaries.

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Ter ination of " ploy ent

& !lo/ ent with HSBC is nor all/ ter inated through one of the following actions4 'ttrition =3esignation, Ooluntar/ ter ination b/ the e !lo/eeC La/off, involuntar/ ter ination due to reduction of the work force, eli ination of a !osition, or decrease in business 2is issals, involuntar/ ter ination for substandard !erfor ance, isconduct, or inabilit/ to !erfor the duties required for the !osition due to !h/sical or ental illness.

8esignations
'n e !lo/ee whishing to ter inate e !lo/ ent should !rovide one onth8s advance written notice to the head of Hu an 3esources after needful reco endations of i ediate su!ervisor. When an e !lo/ee resigns, the *anager Head of Hu an 3esource, based on the reco endations of the concerned 2e!t. Head can ask the e !lo/ee to leave Co !an/ i ediatel/ or other wise co !lete the for alities of notice !eriod. <n case the anage ent requires to e !lo/ee to leave i ediatel/, he will be !aid notice !a/ in full. 1he resigning e !lo/ee is entitled to receive all earned !a/. 'n/ unused sick and:or casual ti e will be forfeited. ,o severance !a/ will be !er itted.

Out Sourcing
<n continuation to the ter s of e !lo/ ent with the Co !an/ the anage ent reserves its right to out source : transfer the services of an/ e !lo/ee to an/ of its local or overseas office or to an/ other co !an/ on following ter s and conditions4 1he decision to out source : transfer shall be ade on the results of the interview based on skills of e !lo/ee and require ents. Co !an/8s own e !lo/ees or the re!resentatives of an/ other co !an/ to which the services are being outsourced:transferred can conduct this interview.

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1he e !lo/ee will be !rovided with the ter s and conditions of outsourcing. 1he e !lo/ee cannot refuse the orders of transfer : out sourcing without a reasonable reason. 1he co !an/ reserves its right to re9ect or acce!t an/ reason for refusal. 1he e !lo/ee will return back to his nor al salar/ in case he is being out sourced to an/ overseas co !an/. 1he e !lo/ee shall be considered to be an e !lo/ee of HSBC and can be transferred to an/ other location after co !letion of an/ contract. Seniorit/ will be reconsidered when the e !lo/ee return back fro an/ overseas de!lo/ ent. 1he Co !an/ reserves its right to negotiate the for s of contract overseas:local de!lo/ ent. 1he e !lo/ee will be liable to sign the contract and an understanding to serve the co !an/ for the !eriod of contract. 1he anage ent also reserved its right to sign a bond if required or to !rovide a guarantee in case of overseas de!lo/ ent.

/r. =hon penn Chair,an

Mr. Sir ?ohn Bond chair,an Mr. S$ephen "reen
"roup Chair,an

Mr. /ichael "eo'he'an

C.1.O

Mr. Murad Saigol @irec$or Mr. Shahid Sethi @irec$or

2!

Co

unication

1o! anage ent is not onl/ tre endousl/ i !roving our Working &nviron ent but also investing in i !roving internal Co unication ,etwork for better 1ea work. Continuous D!(gradation in credit facilit/ we co it ent for Jualit/. 7ver fift/ /ears of banking e.!erience with coo!erative and dedicated e !lo/ees cou!led with !erfor ance based s/ste and 2ata 'nal/sis enable anage ent to take )reventive 'ctions before things reall/ go wrong. 7ne of the *ission of organization to !ro ote good governance and cor!orate values with a strong sense of social res!onsibilit/.

)e,sletters
<n HSBC there are regularl/ !ublished internal docu ents describing infor ation of interest to e !lo/ees regarding infor ation of interest to e !lo/ees regarding business and non business issues affecting the . & !lo/ee handbook HSBC has a for al docu ent that describes basic infor ation about a co !an/5 a general reference regarding a co !an/'s background, the nature of its business, and its rules. Strategic co unication

HSBC also !ractices !resenting infor ation about the co !an/ to broad, e.ternal audiences =e.g., the !ressC. Oideo( ediated co unication =O*CC

<n HSBC co unication with outside organizations and office or Conferences are also held in which !eo!le can hear and see each other using co !uters.

Organi>ational "nviron ent

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"?ternal !actors
1hese are factors outside the control of the business that restricts it fro achieving its ai s and ob9ectives. 1he affects of e.ternal constraints ean that a business a/ not able to achieve its ai s and ob9ectives.

Social !actor
Changes in social trends can i !act on the de and for a fir 's !roducts and the availabilit/ and willingness of individuals to work. 1he Social Culture is also effect on the HSBC Social environ ent refers to the de ogra!hic characteristics and general behavior, attitude, and beliefs of !eo!le in a !articular societ/.

"cono ical
1hese include interest rates, ta.ation changes, econo ic growth, inflation and e.change rates. 's /ou will see throughout the R;oundations of &cono icsR book econo ic change can have a a9or i !act on a fir 's behavior. ;or e.a !le higher interest rates a/ deter invest ent because it costs ore to borrow a strong currenc/ a/ ake e.!orting ore difficult because it a/ raise the !rice return in foreign currenc/.

:olitical<legal co ponent
1he general environ ent includes the legalization, regulation and court decisions that govern and regulate business behavior. <n recent /ears new laws and regulation i !osed additional res!onsibilities on co !anies. Dnfortunatel/ an/ anagers are unaware these new res!onsibilities. ,ow ever/one agrees that co !anies fall severe legal risks. <ndeed an/ believe that the govern ent introduced ore regulate and restrict business behavior.

/nternal !actors

Working environ ent

HSBC offer the health/ and friendl/ environ ent in the work !lace for its e !lo/ee to work with efficientl/. <t !rovide the related training to the

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e !lo/ees to achieve their goals. We can sa/ internal environ ent in the HSBC is ver/ health/.

" ployees2

orale

HSBC believes that )ositive *orale of e !lo/ees enhances better !erfor ance for individuals, and for organizations. & !lo/ees !erfor better when the/8re satisfied with their work and their work environ ent. 1hat8s wh/, HSBC is one of anage ent8s to! !riorities is to aintain e !lo/ee8s orale at a high level.

Organi>ational Culture
HSBC en9o/s a status of a national organization. 1his status is aintain through the nor s N values a!!reciated both b/ the organizational level and national level. Work environ ent and organizational behavior is do inated b/ the values of the societ/. However Social value s/ste is not an obstacle in achieving the !rogressive international i age. HSBC believes in innovation with res!onsibilit/. HSBC is successfull/ anaging a national identit/ and international recognition. 1his a!!roach akes HSBC a largest Bank in all over the world.

Biographic characteristics
HSBC start hiring the !eo!le of ini u age "$ and their a.i u hiring age li it is F# /ears. 3etired age li it in HSBC is B# /ears in the en and FF the wo en so now we can sa/ the !eo!le who work in the HSBC their ages are between "$/ears to B# /ears. 1here is equal o!!ortunit/ is given to en and wo en. 3atio of 0#E fe ales and $#E are ale who work in HSBC, 1here is no concern with the aterial status of the e !lo/ee. 1he/ 9ust focus on skills and qualification.

3bility 4physical and intellectual5

7ur goal is for each e !lo/ee to develo! through individualized creative and challenging 9obs for all ages in a well !lanned and organized environ ent. HSBC select the !eo!le who have !roficient knowledge of related field as well as the !erson is health/ and has a strong !h/sical condition. H3 de!art ent of HSBC has a well !lanned recruiting !rocess in which the/ first evaluate e !lo/ee8s !h/sical and intellectual abilities through evaluation for s, interviews to know about the co unication skills, listening skills, to know about the abilit/ of work 26

in nor al and abnor al conditions. <n their hiring !rocedures the/ identif/ e !lo/ee sta ina, !h/sical health situation to know whether the e !lo/ee is sufficient for the s!ecific 9ob or not. 'nother i !ortant thing that is a!!l/ing in HSBC is after hiring their e !lo/ees the/ give the training to enhance their abilities !h/sical and intellectual.

:ersonality and @ob

HSBC regarding to !ersonalit/ is ver/ a bitious of hiring a good !ersonalit/ staff in organization. <n order to get !erfections and to achieve their goals in effective anners the/ are using the theor/ of !ersonalit/ 9ob(fit. 1he/ hire their e !lo/ees according to the de and of that s!ecific 9ob and regarding to the 9ob need.

;anaging " otion at ,ork

& otion work =e otional laborC is defined as e otional regulation required dis!la/ing organizationall/ desired e otions b/ the e !lo/ees. <t has received increased attention because it is relevant in the service industr/ where social interactions with custo ers, clients, or !atients are a significant !art of the 9ob. & !irical studies found equivocal effects on !s/chological well(being which indicates that e otion work is a ultidi ensional construct with di ensions having !ositive and negative health effects. <n the !resent studies, the following as!ects of e otion work were differentiated4 e otional regulation require ents 1he require ent to dis!la/ !ositive e otions 1he require ent to dis!la/ negative e otions 1he require ent to be sensitive to clients' e otions & otional dissonance 1he e.!ression of e otions is not felt. 'nal/ses were based on a re!resentative sa !le of service workers. 1he data showed that e otional dissonance was the stressful as!ect of e otion work, whereas the dis!la/ of !ositive e otions and sensitivit/ require ents also had !ositive effects on !ersonal acco !lish ent. 1he require ent to e.!ress negative e otions had little effect on burnout. ,euroticis had little i !act on the relations between e otion work and burnout. .

9earning
Learning is a !rocess of getting knowledge through e.!eriences. HSBC also doing this b/ getting the infor ation through other organizations having the sa e

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nature of business and also using bench arking techniques to get knowledge and learning to i !rove the overall organizational effectiveness.

/ portance of attitude, values and @ob satisfaction

HSBC is giving ore i !ortance to the values and attitudes regarding to 9ob. >ob satisfaction eans the e !lo/ee otivation towards 9ob and 9ob satisfaction gives a.i u !roductivit/. <n HSBC, the !erfor ance anage ent !rocess based on values, attitudes and other factors b/ using the co !ensations and incentives given to e !lo/ees.

" ployee2s

otivation

Co pensation
HSBC believes in e.cellent work environ ent considering the fact that target can onl/ be achieved b/ tea work and devotion. Co !ensations and incentives are !rovided to the deserving e !lo/ees to otivate the N to aintain a tea of devoted !rofessionals. 1hus !ersonal !roble s don8t create hurdle in the !rocess of !roductivit/. HSBC8s e !lo/ees are highl/ otivated not because of rewards, incentives and good !ackages given to the but also the/ give their e !lo/ees a right to co unicate, give authorit/ and res!onsibilit/ to anage resources without an/ !ressure and res!ect b/ giving the i !ressive designation na es. 1he/ not onl/ !refer one/ as a basic attitude of otivation but also other factors like4 >ob enrich ent >ob enlarge ent Honorable designation na es 'uthorit/ Co unications

Tea

anage ent

1ea anage ent is an effective !art of leadershi!. <n HSBC different grou!s are ade de!ending u!on the res!onsibilities and duties de anded b/ the 9ob and a s!ecific task is given to that grou! or tea and the tea is res!onsible for anaging resources and gives a.i u !roductivit/ in ini u cost. HSBC is ostl/ uses two conce!ts of tea anage ent.

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)roble solving tea Cross functional tea

:o,er and politics in organi>ation :o,er

<nter!ersonal relationshi! in which one individual or grou! can cause another individual or grou! to take an action, that it would not otherwise take. <nvolves changing the behavior of another. 1/!es of )ower 3eward )ower Coercive )ower =!unish ent !owerC Legiti ate )ower =authorit/C 3eferent )ower =charis aC &.!ert )ower <nfor ation )ower Connection )ower

:olitics
1hose activities taken within organizations to acquire, develo!, and use !ower and other resources to obtain one8s !referred outco e in a situation where there is uncertaint/ of outco e. 's we know that !olitics alwa/s due to iss understanding in HSBC no !olitical agents are worked because !olicies are ade b/ the hr8s !ersons who are the asters of their own areas.

Conflict, negotiations and inter group behavior

HSBC has a !ro!er channel of handling conflicts a ong e !lo/ees at work !lace. 1he/ have !ro!er de!art ent having a anager whose res!onsibilit/ is to ake strategies and to do !lanning to overco e the organizational conflicts. HSBC believes that co unication is an i !ortant tool to achieve organizational goals effectivel/. 1he/ have !ro!er si !lified odel of negotiation !rocess )re!aration and !lanning

2efine ground rules Clarification and 9ustification Bargaining and !roble solving Closure and i !le entation

Organi>ational change and stress

anage ent

HSBC believes in the organizational change when anage ent observes that there is need of change first the/ access infor ation either change in beneficial for the organization or not. 1he/ access such infor ation through interview N questionnaire. 1hen organization identifies that how uch ti e will consu e to ado!t a s!ecific change. <f the change will ore !roductive the organization will acce!t other wise in other case it will re9ect.

Work stress and its

anage ent

)eo!le have dee! attach ents to their work grou!s, organizational structure, !ersonal res!onsibilities N wa/s of acco !lishing work. When an/ of these are disturbed whether b/ !ersonal choice or through an organizational !rocess fro which the/ a/ feel quite re ove and uninvolved. HSBC is a ultidi ensional business organization. *ulti tasking co es with co !le. !roble s, hurdles and difficult targets. 1hese factors enhance the chances of work force to be e.!osed to the danger of work related stress. *anaging this stress a/ serves as an i !ortant factor in !roductive ca!abilit/ of the work force. HSBC s!end decent a ount of a resource to reduce the factor of work related stress which includes recreational activities and !rofessional sessions. 1his winning a!!roach hel!s the work force to counter this enace. HSBC is devoted to aintain an efficient and !rofessional but stress free environ ent.

8eco

endations

'fter looking into different Banking sectors < ust reco end that HSBC should introduce new !roducts to their custo ers which others do not offer. HSBC

!0

should increase their interest rate to facilitate and co!e the custo ers.

a.i u

nu ber of

B/B9/O683:H/"S
WWW.HSBC.C7* WWW.6776L&.C7* WWW.'S+.C7* WWW.-'H77.C7* WWW.HSBC.C7*.)+. WWW.W<C+<)<2&<'.C7*

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