HSBC Bank Research Paper Example | Topics and Well Written Essays - 2250 words

HSBC Bank - Research Paper Example d.). The HSBC holdings are one of the largest banking and financial services organizations in the world. HSBC holdings were established in Honk Kong in 1990 as a parent company to the HSBC and were incorporated as a public limited company in England and Wales in the same year 1990. The bank has its new headquarters at London after 1993. Formerly, that is until 1992 Honk Kong served as its headquarters. The reason was the takeover conditions for the acquisition of Midland Bank that forced the HSBC to move its headquarters from Honk Kong to London in 1993 (Cavallo, 2001). The bank's international network consists of around 8500 offices in 86 countries and territories with assets worth around US$ 2,527; 210,000 shareholders, 331,458 employees and 128 million customers worldwide. In the UK the number of HSBC was more that is, 1600 branches than that of UAE HSBC Bank that had only 8 branches and around 110 ATM machines. The Forbes magazine in April 2, 2008 recognized HSBC, as the fourth large st 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). ... d.). The factor that helped the HSBC to reach this position is its high loan-deposit ratio of 90% that claim to have more deposits than loans. Such a high loan-deposit ratio facilitated the bank to build and retain the trust among its investors and customers and also keeping these users assured with the financial strengths of the banks. Thus the sound financial position of the bank helped the bank to maintain stock at relatively high price even during the times of credit crunch phase, which could not been seen in other banks. The present study focuses on the aspects of financial and banking performance of HSBC bank. The study is carried out to achieve mainly three objectives, which are: To measure how well the HSBC banks are performing in compared to other banks; What are the necessary steps that have been taken by the HSBC banks to improve their overall performance and; Finally to provide sufficient important information to its investors (Hunter, 1990) Literature Review The analysis of financial performance has always been a subject of interest to scholars and academicians. The banking performance in particular invites the attention of bankers as well to evaluate how successfully their operations are being conducted and the interest of various stakeholders are protected. There have been many measures and indexes to evaluate the performance of a bank. These include broadly economic and non-economic measures. For instance, Rovell (1980) remarks banking performance can be best evaluated by interest rate margin over different periods of time. Interest income here is defined as the difference between the interest income and dividend expenses and the