HSBC to be branded with new name

Scarpacci

Thrugelmir wrote: »

The banking levy imposed on the Group as a whole wipes out this contribution. So isn't being ignored. Just makes little commercial sense. As the capital employed would earn a better return elsewhere.

The banking levy is a problem because HSBC's global HQ is in London, not because they have a UK retail bank. Standard Chartered, for example, has no UK retail presence but is badly hit by the levy like HSBC because it's registered in London and does most of its business elsewhere. The UK retail bank will pay the bank levy whomever owns it, but the global balance sheet is affected based on the HQ's location.

HSBC could move the HQ to Hong Kong and then they would be in the same position as, say, Santander, which sees the banking levy applied only to its UK operation.

planteria

Scarp is right Thrug..

With the City a World centre for financial services, losing any global balance sheets from their UK base is a disaster. Though we want our banks to behave properly, if we lose HSBC it will represent failure of the UK to stand up for our own interests.

Herbalus

A few points:
- Mexico is being kept because, unlike closed markets of Turkey and Brazil (low trade %), Mexico trades heavily. It's a similar % to Germany, something like 30% of GDP I heard.
- the US is being kept because HSBC need access to the US$. HSBC is the 4th largest $ clearing bank in the world, and without access to $ then the forex and global payments systems etc would.

Having said that, it doesn't fit their business model to sell UK retail operations, as it's very much connected to business banking, which is by far the most profitable aspect of the bank. The message coming from the investor update is very much that retail and business banking should be driving each other forward.

The name will be changed (Stuart Gulliver's investor update confirmed that), but no name has been decided yet. There's probably still a whole raft of customer surveys and consultations to come yet.

Regarding the global HQ, Stuart Gulliver outlined a number of criteria that a new location would have to meet, including strength and international reputation of regulator, and social and political stability. I don't have much insight in Hong Kong, but I don't think the move is as likely as the rumours. Remember the HQ is just a holdings company, so it can quite easily be situated anywhere in the world.

TheEffect

Once they've rebranded, does this mean they'll scrap the Advance and Premier services, as well as their 'global' advertising, i.e. show your card in any HSBC branch around the world for emergency cash?

Or does it simply mean they'll be exactly the same, with a new name and logo?

Would this affect First Direct?

Herbalus

TheEffect wrote: »

Once they've rebranded, does this mean they'll scrap the Advance and Premier services, as well as their 'global' advertising, i.e. show your card in any HSBC branch around the world for emergency cash?

Or does it simply mean they'll be exactly the same, with a new name and logo?

Would this affect First Direct?

While the new ring-fenced bank has to be a separate legal entity (and all the noises from HSBC suggest the name change is to clarify which part of the group you're dealing with), it wouldn't make sense to completely cut the new bank off from the group. The international aspect is one of their USPs after all. I think it'll just be a new name, but service as usual.

First Direct won't be affected.

planteria

agreed, and i would expect Premier to continue.

AlisonGray

When is this rebrand going to happen ?

MARTYM8`

Herbalus wrote: »

While the new ring-fenced bank has to be a separate legal entity (and all the noises from HSBC suggest the name change is to clarify which part of the group you're dealing with), it wouldn't make sense to completely cut the new bank off from the group. The international aspect is one of their USPs after all. I think it'll just be a new name, but service as usual.

First Direct won't be affected.

As you say if you bank with M&S and First Direct you are banking with the HSBC Group - but they aren't called HSBC. The new branch offshoot will probably just be a separate legal entity with a new - less tarnished - name. No different from TSB or Williams and Glyn being brought back - cuddly banks we remember from our youth before the 2008 crash tarnished the industry.

Given those over 45 are most likely to use branch based operations - and have cash - reverting them back to the old familiar Midland brand they remember would seem to be the way to go.

GTR_King

when will the rebrand happen??

Herbalus

Not for a while, perhaps a year or more. The requirement is to have the separate bank set up by 1 January 2019, but HSBC are aiming to open their new offices in Birmingham by mid-2017. As it would be logical to have the new name on the building, perhaps around then.

The new name hasn't even been chosen yet, and while I'd expect an announcement by the end of the year, it's probably more likely to be nearer Christmas than summer.