HSBC

HSBC Holdings plc is a massive British universal bank and financial services group.

A universal bank provides a wide range of different money services to many types of clients.

The group is headquartered in London, England, but maintains deep business links to East Asia. It holds a massive multinational footprint across the globe. As of September 2024, the bank held US$3.098 trillion in total assets. This makes it the largest bank based in Europe, ahead of BNP Paribas. Globally, it ranks as the 7th largest bank by total assets. It is also the 3rd largest non-state owned bank in the world.

The bank's history began in 1865 in Hong Kong.

At that time, merchants in the British Hong Kong crown colony needed a way to finance trade. They needed to move goods between China, India, Europe, and the rest of the British Empire. This trade included many different products, such as opium. Thomas Sutherland, a man from P&O, founded the bank. He wanted it to operate using sound Scottish banking principles. The founders chose Wardley House for their first office because of its excellent feng shui.

The bank officially commenced operations on March 3, 1865. It was originally incorporated in 1866 as the Hongkong and Shanghai Banking Corporation.

Growth happened through expansion and the opening of new branches.

In 1865, the bank opened a branch in Shanghai. In 1866, it established a branch in Yokohama, Japan. During the late 19th and early 20th centuries, the bank became a leader in Asia. Sir Thomas Jackson served as chief manager from 1876 to 1902. Under his leadership, the bank built new offices in Bangkok, Manila, and Shanghai.

The bank also issued its own banknotes. This helped provide stability when other forms of money, like silver taels, were unreliable due to economic instability.

The modern structure of the group was created through a major reorganization. In 1991, HSBC Holdings plc was established in London. This new entity became the parent company for the original Hongkong and Shanghai Banking Corporation.

In 1992, HSBC completed a major acquisition by taking over Midland Bank. This move made HSBC one of the largest domestic banks in the United Kingdom. Because of the conditions of this takeover, HSBC had to move its world headquarters from Hong Kong to London in 1993. Its main London office moved to 8 Canada Square in Canary Wharf in 2003.

HSBC grew even larger by using acquisitions to enter new markets.

In 1997, the bank purchased banks in Brazil and Argentina. In 1999, it bought the Republic National Bank of New York for $10.3 billion. It continued this trend by buying Crédit Commercial de France in 2000 for $8.85 billion. In 2002, it acquired Mexico's third largest retail bank, Grupo Financiero Bital, for $1.1 billion. It also spent £9 billion to acquire the American lender Household Finance Corporation.

These large purchases helped the bank expand its reach into North and South America.

The bank has faced significant challenges and complex economic shifts. In 2007, HSBC was the first major bank to report large losses from the subprime mortgage crisis. It had to write down its holdings of mortgage securities by $10.5 billion. In 2009, the bank decided to shut down its HSBC Finance branch network in the United States. This decision resulted in nearly 6,000 job losses. The bank's former chairman, Stephen Green, noted that the acquisition of the subprime lender was a mistake. The bank has also dealt with investigations regarding money laundering in Mexico.

Today, HSBC is a central part of the global financial system.

It serves approximately 39 million customers across 57 countries and territories. Its presence spans Africa, Asia, Oceania, Europe, North America, and South America. The bank's shares are listed on several major stock exchanges. These include the London Stock Exchange, the Hong Kong Stock Exchange, and the Bermuda Stock Exchange. Its shares are also available in New York through an American depositary receipt programme. In 2025, Forbes ranked HSBC as number 15 in its Global 2000 list of large companies.