HSBC PEST ANALYSIS

HSBC PEST Analysis

HSBC PEST Analysis

Introduction

HSBC Holdings (HSBC) is a bank and financial services organization that provides investment banking, commercial banking services and wealth management customers. The group operates mainly in Europe and Hong Kong. It is based in London, UK and employs about 312,866 people.

History, Objectives, Structure and Products/Services of HSBC

The company recorded revenues of $ 88.571 billion in the financial year ended December 2008 (FY 2008), an increase of 1.1% over 2007. The operating profit of the company was $ 7,646 million during FY2008, a decrease of 66.3% over 2007. The net profit was $ 5,728 million during FY2008, a decrease of 70.1% over 2007.

HSBC is a bank and financial services organization that provides investment banking, commercial banking services and wealth management. The group's international network comprises over 9,500 offices in 86 countries in the following five regions: Europe, Hong Kong, Other Asia-Pacific, including the Middle East and Africa, North America and Latin America.

With assets of approximately $ 2,527 million at 31 December 2008, HSBC is one of the world's largest banks and financial services organizations.

Major Products and Services

HSBC is a banking and financial services organization which provides investment banking, commercial banking and wealth management services to its clients. The company's key products and services include:

Personal financial services:

Current account

Savings accounts

Loans

Home finance

Cards

Payments

Insurance

International payment services

Commercial banking:

Asset finance

Business loans

Business credit cards

Commercial mortgages

Cash management

Current account

Foreign exchange

Investment banking

Insurance

Trade services

Leasing

Retirement and pensions

Wealth management

Global banking and markets:

Acquisition finance

Foreign exchange

Factoring

Derivatives

Global transaction banking

Corporate and institutional banking services

Private equity

Global research

Credit and rates

PEST Analysis

Political

The attacks on the United States on 11 September have had far-reaching economic effects, further slowing a world economy already growing at its lowest rate in a decade and hastening the contraction of many economies around the world

The shock is expected to reverberate through the world economy and global financial markets in the coming months,” the report states.

The growth of world gross product (GWP) is expected to be 1.4% for 2001, with a recovery to 2% in 2002. The volume of international trade is expected to register “virtually no growth” in 2001, the United Nations warns, but is expected to increase by 4 - 5% in 2002.

The UN report anticipates worse than previously expected downturn in the United States, with the attacks expected to cause “an absolute decline in Gross Domestic Product (GDP) in the third and fourth quarters.”

Different regions of the world are likely to feel the negative impacts of the slowdown, as aggravated by the attacks, in various degrees, the report states. The most severely affected developing economies are expected to be South and East Asia, where 2001 GDP growth projections have been dropped from 4.1% to 1.7%. GDP growth in Africa has been revised downwards from 4.3% to 3.0%, and in Latin American GDP is projected to grow at 0.8%, down from 3.1%.

Economic

Economic conditions are arguably the key component of the macro environment in any country or market and for most products and services. Major aspects such as inflation, unemployment, growth, income and wealth, interest rates, balance of payments and currency ...