Taylor Scott
HSBC Holdings plc, commonly known as HSBC, is a British universal bank and financial services group. It was founded in 1865 in Hong Kong by Scotsman Thomas Sutherland, who worked for a large shipping firm in the region. HSBC is headquartered in London, England, and has a multinational presence with offices, branches, and subsidiaries in 62 countries and territories across the globe. The bank is publicly traded on several stock exchanges, including London, Hong Kong, New York, and Bermuda. As such, it does not have a single owner, but its largest shareholders include major global investment institutions such as Dimensional Fund Advisors, Morgan Stanley, and Goldman Sachs.
| Characteristics | Values |
|---|---|
| Type of company | Public company |
| Date founded | 1865 |
| Founding member | The Hongkong and Shanghai Banking Corporation |
| Headquarters | London, England |
| Total assets | US$3.098 trillion as of September 2024 |
| Assets under custody (AUC) in 2021 | $10.8 trillion |
| Assets under administration (AUA) in 2021 | $4.9 trillion |
| Number of customers | 39 million |
| Number of offices, branches and subsidiaries | 62 |
| Listing | Hong Kong Stock Exchange and London Stock Exchange |
| Constituents | Hang Seng Index and the FTSE 100 Index |
| Largest institutional shareholder | Dimensional Fund Advisors |
| Number of shares held by Dimensional Fund Advisors | 11.4 million |
| Second largest institutional shareholder | Morgan Stanley |
| Number of shares held by Morgan Stanley | 6.15 million |
| Third largest institutional shareholder | Goldman Sachs |
| Number of shares held by Goldman Sachs | 5.4 million |
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What You'll Learn
HSBC Holdings plc
The bank has a long history of acquisitions and expansions, including the British Bank of the Middle East and the Mercantile Bank in 1959, Hang Seng Bank in 1965, and Midland Bank in 1992, solidifying its position as one of the largest domestic banks in the United Kingdom. HSBC Holdings plc has continued to expand globally, with acquisitions in France, Turkey, Mexico, and the United States.
As of 2023, HSBC Holdings plc was ranked 20th in the world in the Forbes rankings of large companies based on sales, profits, assets, and market value. It is the largest Europe-based bank by total assets, with US$3.098 trillion as of September 2024, making it the 7th largest bank in the world by total assets. HSBC Holdings plc has a dual primary listing on the Hong Kong Stock Exchange and the London Stock Exchange and is a constituent of the Hang Seng Index and the FTSE 100 Index.
The main shareholders of HSBC Holdings plc include Dimensional Fund Advisors, Morgan Stanley, Goldman Sachs, Bank of America, Sanders Capital, and BlackRock.
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Shareholders include Dimensional Fund Advisors, Morgan Stanley, and Goldman Sachs
HSBC Holdings plc is a British universal bank and financial services group. It was founded in 1865 in Hong Kong and is currently headquartered in London, England. It has a multinational footprint, with offices, branches, and subsidiaries in 64 countries and territories across the globe.
HSBC is a public company with shares traded on the London, Hong Kong, New York, and Bermuda stock exchanges. As a public company, it has numerous shareholders. As of March 31, 2024, the top three institutional shareholders of HSBC Holdings plc were Dimensional Fund Advisors, Morgan Stanley, and Goldman Sachs.
Dimensional Fund Advisors, founded in 1981, is the largest institutional shareholder of HSBC. As of March 31, 2024, the firm held 11.4 million shares of HSBC Holdings plc, representing 0.16% of the total shares outstanding. Dimensional Fund Advisors focuses on index funds and has over 1,600 employees across 15 global offices.
Morgan Stanley, a global financial services firm, is the second-largest institutional shareholder of HSBC. As of March 31, 2024, Morgan Stanley held approximately 6.15 million shares of HSBC Holdings plc, which equates to 0.16% of the total shares outstanding. Morgan Stanley's private banking division is among the top 20 largest commercial banks in the United States.
Goldman Sachs, founded in 1869, is the third-largest institutional shareholder of HSBC. As of March 31, 2024, Goldman Sachs held about 5.4 million shares of HSBC Holdings plc, representing 0.14% of the total shares outstanding. Goldman Sachs is a premier financial institution with offices worldwide and manages $2.85 trillion in assets as of Q1 2024.
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HSBC Bank USA
The bank was established in 1850 as Marine Midland Bank, but HSBC's presence in the American market dates back to 1865 when it opened an office in San Francisco. HSBC acquired a 51% controlling interest in Marine Midland Bank in 1980 and acquired the remaining interest in 1987. The company adopted its current HSBC USA name in 1999.
In recent years, HSBC has repositioned its US business towards international banking and wealth management, focusing on serving the needs of globally connected affluent and high-net-worth clients. HSBC Bank USA continues to operate a network of physical locations in existing markets, serving its core international customer base.
The main shareholders of HSBC Holdings plc, the parent company of HSBC, include Dimensional Fund Advisors, Morgan Stanley, Goldman Sachs, Bank of America, Sanders Capital, and BlackRock. HSBC Holdings plc is headquartered in London, and HSBC Bank USA has its operational head office in New York City and its nominal head office in Tysons, Virginia.
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HSBC's history
HSBC, formally The Hongkong and Shanghai Banking Corporation, was founded in 1865 in Hong Kong. It was first formally incorporated in 1866. At the time, Hong Kong was under British control, and the bank was established to facilitate trade between Europe, India, and China. HSBC's first office was in Wardley House at 1 Queen’s Road in the heart of Hong Kong’s Central district. This remains the bank's Hong Kong headquarters today.
In July 1865, the bank opened an office in London to facilitate foreign exchange services for clients in China and India and to help recruit and train junior bankers. By 1875, the bank had expanded into seven countries across Asia, Europe, and North America, with branches in Yokohama, Kolkata, Ho Chi Minh City, and Manila. HSBC financed exports, including tea and silk from China, cotton and jute from India, and sugar from the Philippines.
In 1876, Sir Thomas Jackson became chief manager of HSBC. During his twenty-six-year tenure, the bank became a leader in Asia. HSBC gained significant influence due to its issuance of bank notes, which displaced other forms of the era and region, such as silver taels, due to political and economic instability.
In 1953, Michael Turner became chief manager. During his tenure, he established The Hong Kong and Shanghai Banking Corporation of California in 1955 and acquired The British Bank of the Middle East and the Mercantile Bank (based in India) in 1959.
In 1991, the present parent legal entity, HSBC Holdings plc, was established in London. The next year, HSBC took over Midland Bank and became one of the largest domestic banks in the United Kingdom.
In 2002, HSBC expanded further in the United States, acquiring Household Finance Corporation (HFC), a US credit card issuer, and subprime lender. In 2003, HSBC opened new headquarters in London at 8 Canada Square.
In 2020, HSBC opened new headquarters in Singapore, followed by Malaysia in 2021 and the USA in 2024. Today, HSBC has offices, branches, and subsidiaries in 62 countries and territories across Africa, Asia, Oceania, Europe, North America, and South America, serving around 39 million customers. It is the largest Europe-based bank by total assets and the 7th largest bank in the world by total assets.
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HSBC's global expansion
HSBC Holdings plc is a British universal bank and financial services group with a multinational footprint. It was founded in 1865 in Hong Kong (then under British rule) and opened branches in Shanghai the same year. HSBC has since expanded globally and is now headquartered in London, with offices, branches, and subsidiaries in 62 countries and territories across Africa, Asia, Oceania, Europe, North America, and South America. The bank serves around 39 million customers and is ranked as the 7th largest in the world by total assets.
HSBC's expansion can be traced back to the leadership of Sir Thomas Jackson, who became chief manager in 1876. Under his tenure, the bank expanded its physical presence in Asia, constructing new buildings in Bangkok (1921), Manila (1922), and Shanghai (1923). A new head office building in Hong Kong was also established in 1935.
In 1953, Michael Turner succeeded Jackson as chief manager. Turner diversified the business by establishing The Hong Kong and Shanghai Banking Corporation of California in 1955 and acquiring The British Bank of the Middle East and the Mercantile Bank (based in India) in 1959.
In May 1999, HSBC expanded its presence in the United States by purchasing the Republic National Bank of New York for $10.3 billion. This was followed by expansion into Continental Europe in April 2000, with the acquisition of Crédit Commercial de France, a large French bank, for £6.6 billion ($8.85 billion).
HSBC continued its global expansion in the early 2000s, acquiring insolvent Turkish bank Demirbank in July 2001 and Mexico's third-largest retail bank, Grupo Financiero Bital, in August 2002 for $1.1 billion. In November 2002, HSBC further expanded in the United States by acquiring Household Finance Corporation (HFC), a US credit card issuer and subprime lender, for £9 billion (US$15.5 billion).
HSBC has a strong presence in high-growth markets such as Mexico, Singapore, Turkey, and Brazil, and it continues to expand its global wealth centre portfolio, such as with the opening of HSBC UK’s wealth centre in St James’s, London.
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Frequently asked questions
HSBC Holdings plc is a publicly traded company with shares listed on the London, Hong Kong, New York, and Bermuda stock exchanges. As of March 31, 2024, the top shareholders of HSBC Holdings plc include Dimensional Fund Advisors, Morgan Stanley, and Goldman Sachs.
HSBC Holdings plc is the present parent legal entity of HSBC, established in London in 1991. HSBC Holdings plc is headquartered in London, England, with historical and business links to East Asia and a multinational footprint.
HSBC, or The Hongkong and Shanghai Banking Corporation, was founded in 1865 in Hong Kong by Scotsman Thomas Sutherland, who worked for a large shipping firm. Recognizing the need for better local banking facilities, Sutherland raised HKD 5 million in founding capital and opened the bank's first office in Wardley House, Hong Kong, on March 3, 1865. The bank expanded to Shanghai a month later and opened an office in London in July 1865.
HSBC Holdings plc is the parent legal entity of HSBC. In 1991, HSBC Holdings plc was established in London, and the historic Hong Kong-based bank became a fully owned subsidiary.
