Cavite State University Imus Campus

Cavite Civic Center, Palico IV Imus, Cavite

The Hong Kong and Shanghai Banking Corporation (HSBC)

In partial fulfillment
of the course
Monetary Policy and Central Banking

Submitted by:

HEBRES, PAULINE M.

OMAA, ROVENCENT S.

Submitted to:

MS. ROSARIO B. GUMBAN

February 28, 2017

 HISTORY OF THE HONGKONG AND SHANGHAI

BANKING CORPORATION (HSBC)

HSBC was established in 1865 to finance trade between Europe and Asia.

For over 150 years we have connected customers to opportunities. We enable

businesses to thrive and economies to prosper, helping people to realise their

ambitions.

HSBC was born from one simple idea a local bank serving international

needs. In March 1865, HSBC opened its doors for business in Hong Kong, and

today we serve more than 37 million customers worldwide in 70 countries and

territories.

The experiences of the past 150 years have formed the character of

HSBC. A glance at our history explains why we believe in capital strength, in

strict cost control and in building long-term relationships with customers. HSBC

has weathered change in all forms revolutions, economic crises, new

technologies and adapted to survive. The resulting corporate character enables

HSBC to meet the challenges of the 21st century.

HSBC is named after its founding member, The Hongkong and Shanghai

Banking Corporation Limited, which was established in 1865 to finance the

growing trade between Europe, India and China.

The inspiration behind the founding of the bank was Thomas Sutherland, a Scot

who was then working for the Peninsular and Oriental Steam Navigation

Company. He realised that there was considerable demand for local banking

facilities in Hong Kong and on the China coast, and he helped to establish the

bank which opened in Hong Kong in March 1865 and in Shanghai a month later.

Soon after its formation, the bank began opening branches to expand the

services it could offer customers. From the outset trade finance was a strong

feature of the local and international business of the bank, a strength that has

been recognised throughout its history. By the end of the 19th century, the bank

was the foremost financial institution in Asia.

In the 20th century there were challenges and change, from international

conflicts to the Great Depression of the 1930s. By the end of the century, through

growth, acquisitions and diversification, HSBC had transformed from an

important regional bank into one of the worlds leading financial organisations.

HSBC created a new holding company, HSBC Holdings plc, in 1991, and made a

successful bid to acquire full ownership of Midland Bank in 1992. As a result,

HSBC became headquartered in London.

In November 1998, HSBC announced the adoption of a unified brand,

using HSBC and the hexagon symbol everywhere it operated, with the aim of

enhancing recognition of HSBC by customers, shareholders and staff throughout

the world.
Experience has shaped the character of HSBC. The bank has weathered change

in all forms revolutions, economic crises, new technologies and adapted to

survive. This has enabled the bank to meet the challenges of the 21st century.

1865

The Hongkong and Shanghai Banking Corporation Limited opened in Hong Kong

on 3 March 1865 and in Shanghai one month later. It was the first locally owned

bank to operate according to Scottish banking principles.

1875

By 1875 HSBC was present in seven countries across Asia, Europe and North

America. It financed the export of tea and silk from China, cotton and jute from

India, sugar from the Philippines and rice and silk from Vietnam.

1900

By 1900, after strong growth under Chief Manager Thomas Jackson, the bank

had expanded into 16 countries and was financing trade across the world.

Bullion, exchange and merchant banking were important features of the banks

business.
1910

In the early 20th century, HSBC widened the scope of its activities in Asia. It

issued loans to national governments to finance modernisation and infrastructure

projects such as railway building.

1918

The First World War brought disruption and dislocation to many businesses. By

the 1920s, however, Asia was beginning to prosper again as new industries

developed and trade in commodities such as rubber and tin soared.

1930

The 1930s brought recession and turmoil to many markets. Nonetheless, HSBC

asked architects Palmer and Turner to design a new head office in Hong Kong:

Please build us the best bank in the world. The cutting-edge art deco building

opened in 1935.

1941

The bank faced one of its most challenging times during the Second World War.

Staff in Asia showed huge courage in the face of adversity. Many became

prisoners of war. Only the London, Indian and US branches remained in full

operation
1950

At the end of the war, HSBC took on a key role in the reconstruction of the Hong

Kong economy. Its support helped established manufacturers as well as

newcomers to Hong Kong grow their business.

1972

By the 1970s the bank had expanded through acquisition. HSBC bought

Mercantile Bank and The British Bank of the Middle East in 1959. In 1972 it

formed a merchant banking arm, extending its range of services

1992

In the 1980s HSBC bought Marine Midland Bank in the US. In 1992, the newly

created HSBC Holdings plc made a recommended offer for full ownership of the

UKs Midland Bank. Following the acquisition, HSBC moved its headquarters to

London.

1998

In 1998, the bank announced it would adopt a unified brand, using HSBC and the

hexagon symbol everywhere it operated

2016

As new markets blossom and flourish, HSBC continues to be where the growth

is, connecting customers to opportunities. The bank enables businesses to thrive

and economies to prosper, helping people fulfil their hopes and dreams and
realise their ambitions.

COMPANY PROFILE

Thomas Sutherland is the founder of the hongkong and shanghai banking

corporation and also where the initials HSBC is derived.

HSBC is one of the worlds largest banking and financial services

organisations. We serve more than 37 million customers through four global

businesses: Retail Banking and Wealth Management, Commercial Banking,

Global Banking and Markets, and Global Private Banking. Our network covers 70

countries and territories in Europe, Asia, the Middle East and Africa, North

America and Latin America.

With around 4,000 offices worldwide, we aim to be where the growth is,

connecting customers to opportunities, enabling businesses to thrive and

economies to prosper, and ultimately helping people to fulfil their hopes and

realise their ambitions.

Listed on the London, Hong Kong, New York, Paris and Bermuda stock

exchanges, shares in HSBC Holdings plc are held by about 204,000

shareholders in 133 countries and territories.

HSBC IN PHILIPPINES

HSBC has been doing business in the Philippines for over 140 years. The bank

has a network of branches, including those of the locally incorporated HSBC

Savings Bank, located in Metro Manila, Cebu and Davao.

INVESTOR RALATIONS

Current and potential investors can find information about HSBC, including

financial results, dividend information, stock exchange announcements and

investor presentations, on our corporate website.

SUSTAINABILITY

At HSBC we know how important it is that banks play a positive role in the global

economy and society. We believe that a sustainable bank must be consistently

profitable, but not solely concerned with making a profit

OBJECTIVE

Our objective is to be the worlds leading and most respected international bank.

We help small and large companies grow domestically and internationally, and

are developing wealth management services and investing in retail banking in

markets where we can achieve profitable scale.

VALUES

Our values define who we are as an organisation and what makes us distinctive.

They are vital to fulfilling our purpose of helping businesses to thrive, economies

to prosper and people to realise their ambitions. Revenue US$47.96 billion

(2016)

Operating income:

US$7.112 billion (2016)

Profit:

US$2.479 billion (2016)

Total Assets:

US$2.374 trillion (2016)

Total Equity:

US$175.38 billion (2016)

HSBC Holdings PLC is a British multinational banking and financial

services holding company headquartered in London, United Kingdom. It is the

world's sixth largest bank by total assets with total assets of US$2.410 trillion (as

of December 2016).
 HSBC is donating an additional USD150 million to charities and

community projects to thank customers, shareholders and employees for their

support as it marks 150 years in business.

The fund will benefit more than 140 community projects and local charities

worldwide over the three-year period from 2015-17. The USD150 million

donation supplements HSBCs existing contributions to community investment

programmes.

The fund will benefit more than 140 community projects and local charities

worldwide over the three-year period from 2015-17

Last year HSBC invited its employees to vote on the kind of projects they wanted

the new fund to support. More than 50,000 took part. They decided to prioritise

projects relating to children and education, medical welfare and research, and

the environment and wildlife.

Douglas Flint, Group Chairman, HSBC, said: We are delighted to mark

our 150th anniversary with this additional USD150 million community fund. As a

business, we believe that education, medical welfare and resources such as safe

water and sanitation are essential to resilient communities which are, in turn, the

basis of thriving economies and businesses.

HSBC was founded in Hong Kong in 1865 and has grown to become one

of the worlds largest financial institutions. In 2014, it donated USD113.9 million

to charities and non-profit organisations through initiatives including the HSBC

Water Programme and the HSBC Education Programme. Employees

volunteered for 303,922 hours during work time to support these and other

community projects.

OWNERSHIP

HSBC Holdings plc Ownership Summary

HSBC $40.67 * 0.35 0.85%

*Delayed - data as of Feb. 24, 2017

Institutional Ownership

Institutional Holdings 02.36%

Total Number of Holders 371

Total Shares Held 93,605,241

Total Value of Holdings 3,806,925,151

Net Activity 7,185,088

 Top 5 Holders of Institutional Holdings

1. FISHER ASSET MANAGEMENT, LLC 12,868,635

2. DIMENSIONAL FUND ADVISORS LP 12,756,333

3. CAMBIAR INVESTORS LLC 6,494,805

4. FMR LLC 6,457,232

5. NORTHERN TRUST CORP 3,895,264

HSBC Ownership Overview

HSBC Holdings plc (HSBC) Ownership Summary provides a snapshot of

institutional holdings and activity for a particular stock. The institutional holdings
summary data encompasses the holdings and change from most recent 13F
filings. The insider filer data counts the number of monthly positions over 3 month
and 12 month time spans. Summary data is calculated daily, using the most up to
date information available.

NUMBER OF BRANCHES

HSBC has around 6,000 offices in 71 countries and territories across

Africa, Asia, Oceania, Europe, North America and South America, and around 60

million customers. As of 2014, it was the world's sixth-largest public company,

according to a composite measure by Forbes magazine.

HSBC in the Philippines

HSBC has been doing business in the Philippines for over 140 years. The bank

has a network of branches, including those of the locally incorporated HSBC

Savings Bank, located in Metro Manila, Davao and Cebu.

Metro Manila (14 branches)

Davao City (1 branch)

Cebu City (1 branch)

PRODUCTS

Get your banking needs fulfilled by choosing from HSBC's world class line of

products. Everyone has different banking needs, that is HSBC have created a set

of products and services offering you simplicity, flexibility and security.

Overdraft Protection

Enjoy peace of mind and security with your transactions with the flexible

and convenient overdraft protection from HSBC. Subject to credit approval.

Checking

Bank with convenience and ease with access to your funds 24/7.

Savings

Grow your savings by opening an HSBC Savings account.

 Certificate of Deposit

Select from a range of CD terms for short and long term goals at a fixed

rate of return.

Credit Cards

Apply for the HSBC Credit Card that suits your lifestyle, offering

competitive APRs and exceptional Rewards Programs.

Debit Cards

Gain access to your funds around the clock and make purchases directly

from your HSBC checking account using the HSBC Debit MasterCard card.

Global Product Lines

HSBC Direct

HSBC Direct is a telephone/online direct banking operation which attracts

customers through mortgages, accounts and savings. It was first launched in the

USA in November 2005 and is based on HSBC's 'First Direct' subsidiary in

Britain which was launched in the 1980s. The service is now also available in

Canada, Taiwan, South Korea, France and India. Poland is launching business

direct in September 2009. In the US, HSBC Direct is now part of HSBC Advance.
 HSBCnet

HSBCnet is a global service that caters to local business needs by offering

specialised functionality for different regions worldwide.

The system provides access to transaction banking functionality ranging

from payments and cash management to trade services features as well as to

research and analytical content from HSBC. It also includes foreign exchange

and money markets trading functionality.

The system is used widely by HSBC's high-end corporate and institutional

clients served variously by the bank's global banking and markets, commercial

banking and global transaction banking divisions.

HSBCnet is also the brand under which HSBC markets its global e-

commerce proposition to its corporate and institutional clients.

HSBC Advance

HSBC Advance is the group's product aimed at working professionals.

The exact benefits and qualifications vary depending on country, but typically

require a transfer of Salary of USD 1,500 or more every month or Maintain USD

25,000 of deposits in a Savings/Current Account or investments.

Advantages may vary depending on country, such as day-to-day banking

services including but not limited to a Platinum Credit Card, Advance ATM Card,

Current Account and Savings Account. Protection plans and Financial Planning
Services. A HSBC Advance customer enables the customer to open accounts in

another country and transfer their credit history.

HSBC Premier

HSBC Premier is the group's premium financial services product. It has its

own Elite Card entitled HSBC Premier World Card. The exact benefits and

qualification criteria vary depending on country. Customers have a dedicated

Premier Relationship Manager, global 24-hour access to call centres, free

banking services and preferential rates. A HSBC Premier customer receives the

HSBC Premier services in all countries that offer HSBC Premier, without having

to meet that country's qualifying criteria ("Premier in One, Premier in All").

SERVICES

Retail banking, corporate banking, investment banking, mortgage loans,

private banking, wealth management, credit cards, finance and insurance.

 HSBC SUBSIDIARIES AND BRANCHES

1. HSBC Bank Argentina 16. The Hongkong and Shanghai

Banking Corporation
2. HSBC Bank Armenia

17. HSBC Bank India

3. HSBC Bank Australia

18. HSBC Insurance (Asia Pacific)

4. HSBC Bank Bermuda

19. HSBC Expat

5. HSBC Bank (Brazil)

20. HSBC Bank Malaysia

6. HSBC Bank Canada

21. HSBC Bank Malta

7. HSBC Bank (Chile)

22. M&S Bank

8. HSBC Bank (China)

23. HSBC Mexico

9. HSBC Bank Egypt

24. HSBC Bank Middle East

10. HSBC El Salvador

25. HSBC Bank Panama

11. HSBC Bank (Europe)

26. HSBC Bank Polska

12. HSBC Finance

27. HSBC Private Bank

13. HSBC France

28. HSBC Bank (Taiwan)

14. HSBC Trinkaus

29. HSBC Bank (Turkey)

15. Hang Seng Bank

30. HSBC Bank USA

 REFERENCE

www.about.hsbc.it/our-company

http://www.nasdaq.com/symbol/hsbc/institutional-holdings

http://www.nasdaq.com/symbol/hsbc/ownership-summary

http://webcache.googleusercontent.com/search?q=cache:http://hsbc.banklocatio

nmaps.com/philippines

http://www.us.hsbc.com/1/2/home/personal-banking/products

https://en.wikipedia.org/wiki/Category:HSBC_subsidiaries

https://en.wikipedia.org/wiki/HSBC