HSBC Group roadshow comes to Malta
The HSBC call centre in Malta got off to a shaky start but it was now one of the Group's best performers, according to the HSBC Group CEO Mike Geoghegan."There are many things that are being done at the Canary Wharf headquarters that could be done...
The HSBC call centre in Malta got off to a shaky start but it was now one of the Group's best performers, according to the HSBC Group CEO Mike Geoghegan.
"There are many things that are being done at the Canary Wharf headquarters that could be done elsewhere," he said, having previously referred to the fact that he wanted the building to be half empty in a few years as the bank rationalised its procedures through nearshoring, offshoring and outsourcing.
"We are in favour of centralising procedures and maximising our automated processing facilities so that they are consistent at a global level. It is not about reducing staff. Malta might lose one process but it may take another from some other part of the world," he said.
HSBC Group is trying to turn from a confederation of banks to a cohesive one as part of a strategy to "think joined up".
"Our advantage is that we are a global bank but you cannot make the most of this when there are 21 different ways to log on to the system, when there are dozens of ways to apply for a credit card. We have to move from having a global footprint to being a global network. We need to simplify procedures and focus on the core products among the 500 we now offer," he said.
This was the overriding message of a slick presentation at the Portomaso Conference Centre for 600 HSBC staff from all grades.
Mr Geoghegan was in Malta on the 9th day of a trip that will take him to 27 countries in 21 days. The so-called roadshows are not open to the press, a rare exception being made in the case of Malta for just two journalists.
Backed up by a video of a group management board meeting, he explained the strategy for the group, one factor of which is to rebalance the group's operations 50/50 between developed and developing countries - since the best growth was to be found in the latter.
HSBC Group's profits before tax in the US fell by 34.9 per cent between the first quarter of 2006 and the same quarter this year, partly due to the collapse of the subprime mortgage market in the US, where HSBC has $49 billion worth of mortgages.
The multimedia presentation also included interviews with London-based financial analysts who spoke remarkably frankly about why they felt that the HSBC Group was not such a good investment.
They were sceptical about the "think joined up" concept, saying it was too intangible to give much value. They also said that the bank needed to make more inroads into Europe - especially Eastern and Central Europe.
Mr Geoghegan said one problem was that performance in the second half of the year tended to lag behind that in the first half because the bank tended to "keep a bit back". However, it was the amount of capital held by the bank that enabled it to survive the US crisis, he pointed out.
The event started at a frenetic pace, with the HSBC logo projected onto the walls of the conference centre, banners and up-tempo music. The multimedia presentation started with a percussion concert given by Renzo Spiteri at a local HSBC event - and the adrenaline never flagged.
There was over half an hour dedicated to questions and answers, many of which dealt with the global vision as well as HR issues such as performance assessments and reviews. Asked about the group's rigid stand on financing e-gaming, Mr Geoghegan said that the bank had to remember that a minority of people got hooked on gambling as they did on alcohol.
"We need to ask ourselves whether we want to be a part of that. We need to ask whether we want to be a conduit for something that can be quite destructive to families. We would need to look at what the gaming companies offer and what their ethical policies are. I know that there is a lot of money in it and that our competitors in Malta are forging ahead. We need to think about this," he said.
The Maltese bank's 2006 surveys show that 74 per cent of the staff feel engaged, up from 69 per cent the previous year. The results are also positive with regards to customer satisfaction, with 90 per cent giving positive replies in the first quarter of 2007, HSBC Malta CEO Shaun Wallis said. He stressed that the bank also had very positive results for shareholders with the best dividends and the best return on equity.
He said the bank had to grow through cross-selling of products, and through focus on maximising delivery channels.
The HSBC Group employs 315,000 people in over 10,000 offices in 83 countries. Malta has already become HSBC Group's 17th largest operation.
"There are many things that are being done at the Canary Wharf headquarters that could be done elsewhere," he said, having previously referred to the fact that he wanted the building to be half empty in a few years as the bank rationalised its procedures through nearshoring, offshoring and outsourcing.
"We are in favour of centralising procedures and maximising our automated processing facilities so that they are consistent at a global level. It is not about reducing staff. Malta might lose one process but it may take another from some other part of the world," he said.
HSBC Group is trying to turn from a confederation of banks to a cohesive one as part of a strategy to "think joined up".
"Our advantage is that we are a global bank but you cannot make the most of this when there are 21 different ways to log on to the system, when there are dozens of ways to apply for a credit card. We have to move from having a global footprint to being a global network. We need to simplify procedures and focus on the core products among the 500 we now offer," he said.
This was the overriding message of a slick presentation at the Portomaso Conference Centre for 600 HSBC staff from all grades.
Mr Geoghegan was in Malta on the 9th day of a trip that will take him to 27 countries in 21 days. The so-called roadshows are not open to the press, a rare exception being made in the case of Malta for just two journalists.
Backed up by a video of a group management board meeting, he explained the strategy for the group, one factor of which is to rebalance the group's operations 50/50 between developed and developing countries - since the best growth was to be found in the latter.
HSBC Group's profits before tax in the US fell by 34.9 per cent between the first quarter of 2006 and the same quarter this year, partly due to the collapse of the subprime mortgage market in the US, where HSBC has $49 billion worth of mortgages.
The multimedia presentation also included interviews with London-based financial analysts who spoke remarkably frankly about why they felt that the HSBC Group was not such a good investment.
They were sceptical about the "think joined up" concept, saying it was too intangible to give much value. They also said that the bank needed to make more inroads into Europe - especially Eastern and Central Europe.
Mr Geoghegan said one problem was that performance in the second half of the year tended to lag behind that in the first half because the bank tended to "keep a bit back". However, it was the amount of capital held by the bank that enabled it to survive the US crisis, he pointed out.
The event started at a frenetic pace, with the HSBC logo projected onto the walls of the conference centre, banners and up-tempo music. The multimedia presentation started with a percussion concert given by Renzo Spiteri at a local HSBC event - and the adrenaline never flagged.
There was over half an hour dedicated to questions and answers, many of which dealt with the global vision as well as HR issues such as performance assessments and reviews. Asked about the group's rigid stand on financing e-gaming, Mr Geoghegan said that the bank had to remember that a minority of people got hooked on gambling as they did on alcohol.
"We need to ask ourselves whether we want to be a part of that. We need to ask whether we want to be a conduit for something that can be quite destructive to families. We would need to look at what the gaming companies offer and what their ethical policies are. I know that there is a lot of money in it and that our competitors in Malta are forging ahead. We need to think about this," he said.
The Maltese bank's 2006 surveys show that 74 per cent of the staff feel engaged, up from 69 per cent the previous year. The results are also positive with regards to customer satisfaction, with 90 per cent giving positive replies in the first quarter of 2007, HSBC Malta CEO Shaun Wallis said. He stressed that the bank also had very positive results for shareholders with the best dividends and the best return on equity.
He said the bank had to grow through cross-selling of products, and through focus on maximising delivery channels.
The HSBC Group employs 315,000 people in over 10,000 offices in 83 countries. Malta has already become HSBC Group's 17th largest operation.