Page 118 - Flip Banks TG

HSBC has a global network of some 9 ,000 branches /offices

in about 80 plus countries and territories that are dispersed

in Europe, the Asia-Pacific region, the Americas, the Middle

East and Africa. With its deep heritage in China, as well as its

global geographical presence, the bank has an increasing

slice of international trade. Moreover, as China grows and

develops (on the back of free trade and co-operation) HSBC
is well positioned to profit from financing this trade. It might

be argued that China is a market that it understands best.

Likewise, project financing in developing countries which

want to finance large and costly infrastructure projects

where banks like HSBC are essentially repaid by the

revenues made from the project secures HSBC’s position in

these developing markets.

HSBC’s reputation has been severely damaged due to its

fraudulent activities such as money laundering, PPI, and

interest rate hedging products and costs that resulted in

substantial fines both in the U.S. and Europe.

Litigation in whatever form and associated fines damage the

bank’s reputation and this is still playing out. However,

success breeds success and the potential of HSBC’s Global

Banking and Markets and Commercial Banking particularly

in the faster-growing regions of Hong Kong, the rest of Asia-
Pacific provide an enormous opportunity for the future.