SWOT Analysis of HSBC:
Strengths:
1. Size: World's largest (based on a composite score, Forbes) and most profitable banking corporation
2. Highest international presence: 128 mn customers worldwide
3. London & NY listing: Prestige and visibility. Access to UK and US capital markets for future capital raising.
4. Diversified approach - both geographically and on basis of customer group
Weaknesses:
1. Branding: HSBC setup banks under different names (Hong Kong Bank of Canada, British Bank of the Middle East, etc) over 100 years. In 1998, they were all branded together, but the previous lack of branding and the name changes may have hurt HSBC in brand recognition.
2. Bad debts due to housing market: HSBC's North American results have been significantly affected by higher loan impairment charges due to the impact on its portfolio of credit deterioration related largely to housing market weakness in the US.
Opportunities:
1. The Middle East: HSBC hs been aggressively expanding its business in this region, where other banks are hesitant to setup, and its reaping rich dividends.
2. Emerging economies: HSBC is the largest international bank in Asia wherein the economies have risen by unprecedented levels in previous years. By investing in these and other emerging countries like Brazil, HSBC can offset problems it may have as spending in the US and UK declines.
3. Becoming world's leading financial services company: This is HSBC's stated aim. This requires HSBC to transform itself from a global bank to a more diversified global financial services company such as Citibank.
Threats:
1. Downturn in American spending: Because of American housing market collapse and fears of impending recession, Americans are predicted ...