The Wall Street Journal has reported that regulators are taking some of the bubbly out of bankers' bonuses. This will surely spark some outrage about meddling in private companies' affairs, not to mention executives' paychecks. Still, let's take a deep breath, count to 10, and place the blame squarely where it belongs: on the managements of financial companies and their insatiable desire to get drunk on power, pad their paychecks, and play a terrifying game of chicken on public thoroughfares.
Many investors see no reason to curtail CEO pay, even if it is outrageous, frequently a waste of shareholder money, and hardly a general indicator of exceptional business performance. What gets lost in the debate is that our marketplace really needs long-term, reasonable participants, and for too long, we've seen far more drunken partiers than sober participants.
Short-term incentives set up terrible temptations, and these are dangerous for all of us -- and they make an almost impossible case for the laissez-faire freedom many Americans crave.
Best Stocks To Buy: Deutsche Bank AG (SBND)
Deutsche Bank AG is a global investment bank. The Company offers a variety of investment, financial and related products and services to private individuals, corporate entities and institutional clients around the world. The Company operates through such divisions as: Private and Business Clients, Asset and Wealth Management, Corporate Banking and Securities, Global Transaction Banking and Non-Core Operations Unit. Deutsche Bank AG is active domestically and in various countries, through the network of numerous branches. In February 2014, the Company and its related bodies corporate ceases to a share holder in the capital of the Company. Advisors' Opinion:- [By Donald van Deventer]
Long-duration Treasury Exchange-Traded Funds: (TLH), , (IEF), (DTYL), (DLBL), (ILTB), (TENZ), (ITE), (TLO), (EDV), (VGIT), (VGLT), (TMF), (TYD), (LBND), (UBT), (UST), (TMV), (TYO), (DSTJ), (DSXJ), (SBND), (PST), (DTYS), (DLBS), (TBF), (TTT), (TYNS), (TYBS), (TBX).
Top 10 Bank Stocks To Watch Right Now: BancorpSouth Inc (BXS)
BancorpSouth, Inc., incorporated on February 17, 1982, is a financial holding company. Through its principal bank subsidiary, BancorpSouth Bank (the Bank), the Company conducts commercial banking and financial services operations in Mississippi, Tennessee, Alabama, Arkansas, Texas, Louisiana, Florida, Missouri and Illinois. As of December 31, 2012, the Company and its subsidiaries had total deposits of $11.1 billion. The Bank conducts a general commercial banking, trust and insurance business through 284 offices in Mississippi, Tennessee, Alabama, Arkansas, Texas, Louisiana, Florida, Missouri and Illinois. The Bank and its subsidiaries provide a range of financial services to individuals and small-to-medium size businesses. On July 2, 2012, the Company purchased certain assets of The Securance Group, Inc.
The Bank operates investment services and insurance agency subsidiaries, which engage in investment brokerage services and sales of other insurance products. The Bank�� trust department offers a range of services, including personal trust and estate services, certain employee benefit accounts and plans, including individual retirement accounts, and limited corporate trust functions.
Lending Activities
The Bank�� lending activities include both commercial and consumer loans. The Bank offers a range of commercial loan services including term loans, lines of credit, equipment and receivable financing and agricultural loans. A range of short-to-medium term commercial loans, both secured and unsecured, are made available to businesses for working capital (including inventory and receivables), business expansion (including acquisition and development of real estate and improvements), and the purchase of equipment and machinery. The Bank also makes construction loans to real estate developers for the acquisition, development and construction of residential subdivisions.
The Bank�� lending activities consists of the origination of fixed and adjustable! rate residential mortgage loans secured by owner-occupied property located in the Bank�� primary market areas. In addition, the Bank offers construction loans, second mortgage loans and home equity lines of credit. The Bank finances the construction of individual, owner-occupied houses on the basis of written underwriting and construction loan management guidelines.
The Bank makes residential construction loans to individuals who intend to erect owner-occupied housing on a purchased parcel of real estate. The Bank sells its mortgage loans with terms of 15 years or more in the secondary market and either retains or releases the right to service those loans. Non-residential consumer loans made by the Bank include loans for automobiles, recreation vehicles, boats, personal (secured and unsecured) and deposit account secured loans. The Bank also issues credit cards.
Investment Activities
As of December 31, 2012, the Company�� held-to-maturity and available-for-sale securities included the United States Government agency securities, taxable obligations of states and political subdivisions, tax-exempt obligations of states and political subdivisions, government agency issued residential mortgage-backed securities, government agency issued commercial mortgage-backed securities, collateralized debt obligations and other securities. As of December 31, 2011, the Company�� available-for-sale securities totaled $ 2.4 billion. Investments in tax-exempt securities totaled $455.1 million as of December 31, 2012.
Source of Funds
Deposits originating within the communities served by the Bank are the primary source of funding. As of December 31, 2012, the Company and its subsidiaries had total deposits of $ 11.1 million. The Bank offered deposits, such as noninterest bearing demand deposits, interest bearing demand deposits, savings deposits and other time deposits. The Company had federal funds purchased and securities sold under agreement to repurc! hase of $! 414.6 million as of December 31, 2012.
Subsidiary Activities
The Bank�� insurance service subsidiary serves as an agent in the sale of title insurance, commercial lines of insurance and a full line of property and casualty, life, health and employee benefits products and services and operates in Mississippi, Tennessee, Alabama, Arkansas, Texas, Louisiana, Missouri and Illinois. The Bank�� investment services subsidiary provides brokerage, investment advisory and asset management services and operates in certain communities in Mississippi, Tennessee, Alabama, Arkansas, Louisiana, Texas, Florida and Missouri.
Advisors' Opinion:- [By Todd Campbell]
Now, thanks to rebounding home prices, those same banks are back in growth mode again, suggesting an investment opportunity in market share leaders, such as BancorpSouth, Inc. (BXS).
Top 10 Bank Stocks To Watch Right Now: Tompkins Financial Corp (TMP)
Tompkins Financial Corporation (Tompkins) is a bank holding company. The Company is a locally oriented, community-based financial services company that offers an array of products and services, including commercial and consumer banking, leasing, trust and investment management, financial planning and wealth management, insurance, and brokerage services. The Company operates in two segments: banking and financial services. Banking services consist primarily of attracting deposits from the areas served by the Company�� banking subsidiaries��45 banking offices and using those deposits to originate a variety of commercial loans, agricultural loans, consumer loans, real estate loans, and leases in those same areas. Financial services activities consist of the results of the Company�� trust, financial planning and wealth management services, broker-dealer services, and insurance and risk management operations. On June 1, 2011, its subsidiary, Tompkins Insurance Agencies, Inc. (Tompkins Insurance), acquired Olver & Associates, Inc. (Olver), a property and casualty insurance agency. In August 2012, it acquired VIST Financial Corp.
The Company maintains a portfolio of securities, such as obligations of the United States Government agencies and the United States Government sponsored entities, obligations of states and political subdivisions thereof, and equity securities. Tompkins provides a variety of financial services to individuals and small business customers.
Commercial Services
The Company�� subsidiary banks provide financial services to corporations and other business clients. Lending activities include loans for a variety of business purposes, including real estate financing, construction, equipment financing, accounts receivable financing, and commercial leasing. Other commercial services include deposit and cash management services, letters of credit, sweep accounts, credit cards, purchasing cards, Internet-based account services, and remote deposit ser! vices.
Retail Services
The Company�� subsidiary banks provide a variety of retail banking services, including checking accounts, savings accounts, time deposits, individual retirement accounts (IRA) products, brokerage services, residential mortgage loans, personal loans, home equity loans, credit cards, debit cards and safe deposit services. Retail services are accessible through a variety of delivery systems, including branch facilities, automated teller machines (ATMs), voice response, Internet banking, and remote deposit services.
Trust and Investment Management Services
The Company offers a range of financial services to customers, including trust and estate services, investment management, and financial and insurance planning. These services are offered through Tompkins Investment Services (TIS), a division of Tompkins Trust Company, and AM&M. Tompkins Financial Advisors has office locations at all three of the Company�� subsidiary banks, and provides a range of money management services, including investment management, trust and estate, financial and tax planning, as well as life, disability and long-term care insurance services.
Broker-Dealer Services
AM&M operates a broker-dealer subsidiary, Ensemble Financial Services, Inc. Ensemble Financial Services, Inc. is an outsourcing company for financial planners and investment advisors.
Insurance Services
The Company provides property and casualty insurance services and employee benefits consulting through Tompkins Insurance. Tompkins Insurance is an independent insurance agency. Tompkins Insurance has automated systems for record keeping, claim processing and coverage confirmation, and can provide insurance pricing comparisons from a range of insurance companies. Tompkins Insurance provides employee benefits consulting to employers in Western and Central New York, assisting them with their medical, group life insurance and group disability in! surance. ! In addition to its seven offices, Tompkins Insurance shares several offices with The Bank of Castile and The Trust Company. AM&M also provides insurance services for financial planning and wealth management clients, offering risk management plans using life, disability and long-term care insurance products.
Subsidiary Activities
The Company�� subsidiaries include: three wholly owned banking subsidiaries, Tompkins Trust Company (the Trust Company), The Bank of Castile, and The Mahopac National Bank (Mahopac National Bank); AM&M Financial Services, Inc., doing business as Tompkins Financial Advisors, a wholly owned and an investment advisor (AM&M), and a wholly owned insurance agency subsidiary, Tompkins Insurance. AM&M and the trust division of the Trust Company provides an array of investment services under the Tompkins Financial Advisors division, including investment management, trust and estate, financial and tax planning, as well as life, disability and long-term care insurance services. The Trust Company has a full-service office in Cortland, New York and a full-service office in Auburn, New York. Both of these offices are located in counties contiguous to Tompkins County. The Trust Company operates 15 banking offices, including two limited-service banking offices in the counties of Tompkins, Cortland, Cayuga and Schuyler, New York.
The Bank of Castile is a New York State-chartered commercial bank and conducts its operations through its 15 banking offices, in towns situated in and around the areas commonly known as the Letchworth State Park area and the Genesee Valley region of New York State. The Bank of Castile�� lending portfolio includes loans to the agricultural industry. The Mahopac National Bank (Mahopac National Bank) operates 15 banking offices, including one limited-service office in counties north of New York City. The 15 banking offices include five full-service offices in Putnam County, New York, three full-service offices in Dutchess County,! New York! , and six full-service offices, and one limited-service office in Westchester County, New York.
Tompkins Insurance Agencies, Inc. (Tompkins Insurance) offers property and casualty insurance to individuals and businesses primarily in Western and Central New York. AM&M Financial Services, Inc. (AM&M) offers financial services through three operating companies: AM&M Planners, Inc., which provides fee-based financial planning and wealth management services for corporate executives, small business owners and high-net-worth individuals; Ensemble Financial Services, Inc., an independent broker-dealer and outsourcing company for financial planners and investment advisors, and Ensemble Risk Solutions, Inc., which creates customized risk management plans using life, disability and long-term care insurance products. Tompkins Capital Trust I and Sleepy Hollow Capital Trust I are Delaware statutory business trusts.
Advisors' Opinion:- [By Marc Bastow]
Ithaca, N.Y.-based financial services company Tompkins Financial (TMP) raised its quarterly dividend 5.3% to 40 cents per share, payable Nov. 15 to shareholders of record as of Nov. 4.
TMP Dividend Yield: 3.25% - [By Fredrik Arnold]
Tompkins Financial Corp. (TMP) netted $44.97 based on a mean target price estimate from three analysts combined with projected annual dividend less broker fees. The Beta number showed this estimate subject to volatility 27% less than the market as a whole.
Top 10 Bank Stocks To Watch Right Now: First Horizon National Corp (FHN)
First Horizon National Corporation (FHN), incorporated in 1968, is a bank holding company. The Company provides financial services through its subsidiary, First Tennessee Bank National Association (the Bank), and its subsidiaries. The Company�� two brands First Tennessee and FTN Financial provide customers with a range of products and services. First Tennessee provides retail and commercial banking services throughout Tennessee. FTN Financial (FTNF) is engaged in fixed income sales, trading, and strategies for institutional clients in the United States and abroad. FHN has four operating business segments: regional banking, capital markets, corporate, and non-strategic. As of December 31, 2011, the Bank had $16.4 billion in total deposits and $16 billion in total net loans. As of December 31, 2011, the Company�� subsidiaries had over 200 business locations in 17 the United States states, Hong Kong, and Tokyo, excluding off-premises automated teller machines (ATMs). As of December 31, 2011, the Bank had 183 branch locations in four states, which include 172 branches in metropolitan areas of Tennessee; two branches in northwestern Georgia; seven branches in northwestern Mississippi, and two branches in North Carolina. As of December 31, 2011, FTN Financial products and services were offered through 18 offices in total, including 16 offices in 14 states plus an office in each of Hong Kong and Tokyo.
The regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customers in Tennessee and surrounding markets. Regional banking provides investments, financial planning, trust services and asset management, credit card, cash management, and first lien mortgage originations within the Tennessee footprint. In addition, the regional banking segment includes correspondent banking, which provides credit, depository, and other banking related services to other financial institutions.
The capital markets se! gment consists of fixed income sales, trading, and strategies for institutional clients in the United States and abroad, as well as loan sales, portfolio advisory, and derivative sales. The corporate segment consists of gains on the extinguishment of debt, unallocated corporate expenses, expense on subordinated debt issuances and preferred stock, bank-owned life insurance, unallocated interest income associated with excess equity, net impact of raising incremental capital, revenue and expense associated with deferred compensation plans, funds management, low income housing investment activities, and charges related to restructuring, repositioning, and efficiency. The non-strategic segment consists of the wind-down national consumer lending activities, legacy mortgage banking elements, including servicing fees, and the associated ancillary revenues and expenses related to these businesses. Non-strategic also includes the wind-down trust preferred loan portfolio and exited businesses along with the associated restructuring, repositioning, and efficiency charges.
As of December 31, 2011, the Company provided services through its subsidiaries, which include general banking services for consumers, businesses, financial institutions, and governments; through FTN Financial fixed income sales and trading, underwriting of bank, loan sales, advisory services and derivative sales; discount brokerage and full-service brokerage; correspondent banking; transaction processing, such as nationwide check clearing services and remittance processing; trust, fiduciary, and agency services; credit card products; equipment finance; investment and financial advisory services; mutual fund sales as agent; retail insurance sales as agent, and mortgage banking services.
As of December 31, 2011, the commercial, financial, and industrial (C&I) portfolio was eight billion dollars, and is consisted of loans used for general business purposes, and consisted of relationship customers in Tennessee and certain n! eighborin! g states, which are managed within the regional bank. Products include working capital lines of credit, term loan financing of owner-occupied real estate and fixed assets, and trade credit enhancement through letters of credit. As of December 31, 2011, the unpaid principal balance (UPB) of trust preferred loans totaled $447.2 million with the UPB of other bank-related loans totaling approximately $161.8 million. The commercial real estate portfolio includes both financings for commercial construction and non-construction loans. This portfolio is segregated between income commercial real estate (CRE) loans which contain loans, lines, and letters of credit to commercial real estate developers for the construction and mini- permanent financing of income-producing real estate, and residential CRE loans. The residential CRE portfolio includes loans to residential builders and developers for the purpose of constructing single-family detached homes, condominiums, and town homes. As of December 31, 2011, the residential CRE portfolio was $.1 billion. As of December 31, 2011, the consumer real estate portfolio was $5.3 billion, and is composed of home equity lines and installment loans. As of December 31, 2011, the credit card and other portfolios were $.3 billion, and primarily include credit card receivables, automobile loans, and over-the-counter (OTC) construction loans and other consumer related credits.
FHN�� investment portfolio consists of debt securities, including government agency issued mortgage-backed securities (MBS) and government agency issued collateralized mortgage obligations (CMO). During the year ended December 31, 2011, Government agency issued MBS and CMO, and other agencies averaged $2.9 billion. During 2011, the United States treasury securities and municipal bonds averaged $79.5 million. During 2011, investments in equity securities averaged $222.3 million.
During 2011, short-term funds (certificates of deposit greater than $100,000, federal funds purchased (! FFP), sec! urities sold under agreements to repurchase, trading liabilities, and other short-term borrowings) averaged $3.6 billion. During 2011, other borrowings increased to $.3 billion. Term borrowings include senior and subordinated borrowings and advances with original maturities greater than one year. During 2011, average term borrowings averaged $2.6 billion.
The Company competes with Regions Bank, SunTrust Bank, Wells Fargo Bank N.A., Bank of America N.A., and Pinnacle National Bank.
Advisors' Opinion:- [By Monica Gerson]
First Horizon National (NYSE: FHN) is estimated to report its Q3 earnings at $0.18 per share on revenue of $307.14 million.
Laboratory Corp. of America Holdings (NYSE: LH) is expected to report its Q3 earnings at $1.80 per share on revenue of $1.45 billion.
- [By Sean Williams]
Finally, regional bank First Horizon National (NYSE: FHN ) , which has banking branches throughout Tennessee, added 4.2% just a day after paying shareholders a $0.05 quarterly dividend. Like Genuine Parts, there is no company specific news driving First Horizon higher, but the prospect for a higher net interest margin because of higher interest rates is certainly adding a boost to banks like First Horizon that rely on traditional loan and deposit growth. But as my Foolish colleague John Maxfield recently pointed out, you may want to keep your expectations for First Horizon tempered in the interim.
Top 10 Bank Stocks To Watch Right Now: China Citic Bank Corp Ltd (CHCJY)
CHINA CITIC BANK CORPORATION LIMITED is a commercial bank. The Bank operates its businesses primarily through retailing banking, including band card services, saving, personal loan, wealth management, credit card, banking services, private banking, financial services of traveling abroad and electronic banking services; corporate banking, including financial organization services, international business, investment banking, supply chain financing, account settlement, financing services for small enterprises, trading services, cash management, asset management, international settlement and trade financing, among others, as well as capital market business, including foreign exchange business, bond business, trading of financing and derivative products, financial service platform and financial solutions. Advisors' Opinion:- [By MARKETWATCH]
HONG KONG (MarketWatch) -- Hong Kong stocks opened lower Tuesday, after China's central bank reportedly drained 48 billion yuan ($7.9 billion) from the money market on Tuesday through bond-repurchase agreements. The Hang Seng Index (HK:HSI) moved lower by 0.3%. Banks retreated, as China Merchants Bank Co., (HK:3968) (CIHHF) declined 2.2%, Bank of Communications Co. (HK:3328) (BKFCF) fell 1.6%, China Minsheng Banking Corp. (HK:1988) (CMAKY) lost 1.4%, and China Citic Bank Corporation (HK:998) (CHCJY) dropped 1.2%. China's Dongfeng Motor Group Co. (HK:489) , currently in negotiations to buy a stake in PSA Peugeot Citroen, suspended trading of its H-shares in Hong Kong markets. The state-owned car maker didn't clarify the reason in the announcement. On Monday, the company said in a filing that its commercial-vehicle unit has been served with a request for arbitration by a Brazilian firm, which is seeking damages of approximately 1.67 billion Brazilian reals ($700 million) for Dongfeng's failure to establish a joint venture with the firm. On the mainland, the Shanghai Composite Index (CN:SHCOMP) gave up 0.5% to 2,125.54.
Top 10 Bank Stocks To Watch Right Now: KeyCorp (KEY)
KeyCorp is a bank holding company for KeyBank National Association (KeyBank). Through KeyBank and certain other subsidiaries, the Company provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance and investment banking products and services to individual, corporate and institutional clients through two business segments: Key Community Bank and Key Corporate Bank. As of December 31, 2011, these services were provided through KeyBank�� 1,058 full-service retail banking branches in 14 states, additional offices, a telephone banking call center services group and a network of 1,579 automated teller machines (ATMs) in 15 states. On January 17, 2012, the Company opened another national bank subsidiary.
In addition to the banking services of accepting deposits and making loans, the Bank and trust company subsidiaries offer personal and corporate trust services, personal financial services, access to mutual funds, cash management services, investment banking and capital markets products, and international banking services. Through its bank, trust company and investment adviser subsidiaries, the Company provides investment management services to clients that include corporate and public retirement plans, foundations and endowments, individuals and trust funds. The Company provides other financial services - both within and outside of its primary banking markets - through various nonbank subsidiaries. These services include community development financing, securities underwriting and brokerage. It is also an equity participant in a joint venture that provides merchant services to businesses.
Lending Activities
As of December 31, 2011, the Company�� Commercial, Financial and Agricultural loans, also referred to as Commercial and Industrial, represented 39% of its total loan portfolio. As of December 31, 2011, commercial real estate loans represented approximately 19% of its total loan portfolio. These loans include bo! th owner and nonowner-occupied properties and constitute approximately 27% of its commercial loan portfolio. Its commercial real estate lending business is conducted through two primary sources: its 14-state banking franchise, and Real Estate Capital and Corporate Banking Services. The Company conducts financing arrangements through its equipment finance line of business. Commercial lease financing receivables represented 17% of commercial loans at December 31, 2011. The home equity portfolio is the largest segment of its consumer loan portfolio.
Investment Activities
The Company�� securities portfolio totaled $18 billion at December 31, 2011. Available-for-sale securities were $16 billion at December 31, 2011. Held-to-maturity securities were $2.1 billion at December 31, 2011. At December 31, 2011, it had $2.1 billion in collateralized mortgage obligations (CMOs) in its held-to-maturity securities portfolio. At December 31, 2011, the Company had $15.9 billion invested in CMOs and other mortgage-backed securities in the available-for-sale portfolio. Federal Agency CMOs constitute most of its held-to-maturity securities along with foreign bonds and preferred equity securities. The investments in equity and mezzanine instruments made by its principal investing unit represented 61% of other investments at December 31, 2011. They include direct investments (investments made in a particular company), as well as indirect investments (investments made through funds that include other investors).
Sources of Funds
Domestic deposits are the Company�� primary source of funding. During the year ended December 31, 2011, these deposits averaged $58.5 billion and represented 80% of the funds it used to support loans and other earning assets. Wholesale funds, consisting of deposits in its foreign office and short-term borrowings, averaged $3.4 billion during 2011. At December 31, 2011, the Company had $4.7 billion in time deposits of $100,000 or more.
Advisors' Opinion:- [By Laura Brodbeck]
Thursday
Earnings Expected From: SAP AG (NYSE: SAP), Novartis AG (NYSE: NVS), UnitedHealth Group Incorporated (NYSE: UNH), Mattel, Inc, (NASDAQ: MAT), Key Corp (NYSE: KEY), Philip Morris International (NYSE: PM), Morgan Stanley (NYSE: MS), PPG Industries, Inc (NYSE: PPG), The Blackstone Group L.P. (NYSE: BX), Schlumberger N.V. (NYSE: SLB), International Business Machines (NYSE: IBM), Google Inc. (NASDAQ: GOOG) Economic Releases Expected: Chinese house prices, US housing starts, eurozone CPI, Hong Kong’s unemployment rateFriday
- [By Eric Volkman]
Bank of America's (NYSE: BAC ) Merrill Lynch, Wells Fargo's (NYSE: WFC ) Securities unit, KeyCorp (NYSE: KEY ) subsidiary KeyBanc Capital Markets, and Bank of Montreal's (NYSE: BMO ) BMO Capital Markets are the joint book-running managers of the issue.
Top 10 Bank Stocks To Watch Right Now: HSBC Holdings PLC (HBC)
HSBC Holdings plc (HSBC), incorporated on January 1, 1959, is a global banking and financial services organizations. As of December 31, 2010, it provided a range of financial services to around 95 million customers through two customer groups, Personal Financial Services (PFS), including consumer finance, and Commercial Banking (CMB), and two global businesses, Global Banking and Markets (GB&M), and Global Private Banking (GPB). Its international network covers 87 countries and territories in six geographical regions; Europe, Hong Kong, Rest of Asia-Pacific, the Middle East, North America and Latin America. As of December 31, 2010, the Company had an international network of some 7,500 offices in 87 countries and territories in six geographical regions; Europe, Hong Kong, Rest of Asia-Pacific, the Middle East, North America and Latin America. PFS incorporates the Company�� consumer finance businesses, which include HSBC Finance Corporation (HSBC Finance). In April 2011, the Company closed its retail banking operation in Russia. In July 2011, the Company sold its unsecured written-off personal loan and credit card portfolio to J M Financial Asset Reconstruction Co. Pvt. Ltd. On May 20, 2012, HSBC Holdings PLC's wholly owned subsidiary HSBC Bank USA, N.A. and other wholly owned subsidiaries, sold 195 retail branches to First Niagara Bank, N.A. (First Niagara). In May 2012, the Company�� 70.03% owned subsidiary, HSBC Bank Malta plc, sold its card acquiring business to HSBC Merchant Services Ltd. In June 2012, the Company�� indirect wholly owned subsidiary, HSBC Iris Investments (Mauritius) Ltd, sold its 4.73% interest in Axis Bank Limited and 4.74% interest in Yes Bank Limited. In July 2012, its subsidiary, HSBC Europe (Netherlands B.V.), sold its 100% interest in HSBC Credit Zrt, to CentralFund Kockazati Tokealap. On March 31, 2013, Enstar Group Ltd�� subsidiary completed the acquisition from Household Insurance Group Holding Company of HSBC Insurance Company of Delaware and Household Life Insur! ance Company of Delaware, as well as its three subsidiary insurers.
The Company�� principal banking operations in Europe are HSBC Bank plc in the United Kingdom, HSBC France, HSBC Bank A.S. in Turkey, HSBC Bank Malta p.l.c., HSBC Private Bank (Suisse) S.A. and HSBC Trinkaus & Burkhardt AG. Through these operations it provides a range of banking, treasury and financial services to personal, commercial and corporate customers across Europe. HSBC�� banking subsidiaries in Hong Kong are The Hongkong and Shanghai Banking Corporation Limited and Hang Seng Bank Limited.
The Company offers a range of banking and financial services in the People�� Republic of China, mainly through its local subsidiary, HSBC Bank (China) Company Limited. It also participates indirectly in the People�� Republic of China through its four associates. Outside Hong Kong and the People�� Republic of China, it conducts business in 22 countries and territories in the Rest of Asia-Pacific region, through branches and subsidiaries of The Hongkong and Shanghai Banking Corporation, with coverage in Australia, India, Indonesia, Malaysia and Singapore.
In the Middle East, the Company has network of branches of HSBC Bank Middle East Limited, together with HSBC�� subsidiaries and associates. Its North American businesses are located in the United States, Canada and Bermuda. Operations in the United States are conducted through HSBC Bank USA, N.A., which is concentrated in New York State, and HSBC Finance, a national consumer finance company based near Chicago. HSBC Markets (USA) Inc. is the intermediate holding company of, inter alia, HSBC Securities (USA) Inc. HSBC Bank Canada and HSBC Bank Bermuda operate in their respective countries.
The Company�� operations in Latin America consists of HSBC Bank Brasil S.A.-Banco Multiplo, HSBC Mexico, S.A., HSBC Bank Argentina S.A. and HSBC Bank (Panama) S.A. In addition to banking services, it operates insurance businesses in Brazil, Mexi! co, Argen! tina, Panama and a range of smaller markets.
Personal Financial Services
PFS offers the Company�� products and services to customers based on their individual needs. Premier and Advance services are for customers who value international connectivity and benefit from its global reach and scale. It offers a range of banking products and services reflecting local requirements. In addition, it issues card globally, offering HSBC branded cards, co-branded cards with selected partners and private label (store) cards. Its customer offerings include personal banking products, including current and savings accounts, mortgages and personal loans, credit cards, debit cards and local and international payment services, and wealth management services, including insurance and investment products and financial planning services.
HSBC Premier provides preferential banking services to high net worth customers and their immediate families with a relationship manager, wealth advice and solutions. Customers can access emergency travel assistance, telephone banking and an online global view of their Premier accounts globally with free money transfers between them. HSBC Advance provides a range of preferential products and services customized to meet local needs. With a telephone service, access to wealth advice and online tools to support financial planning, it gives customers an online global view of their Advance accounts with money transfers between them. Wealth Solutions & Financial Planning process designed for global individual customer needs to help its clients to protect, grow and manage their wealth through investment and wealth insurance products manufactured by in-house partners, including Global Asset Management, Global Markets and HSBC Insurance, and by selected third party providers. During 2010, PFS provided 92 million individual and self-employed customers with financial services in over 60 markets globally.
Commercial Banking
The Company ! segments ! its CMB business into Corporate, to serve both Corporate and Mid-Market companies, and Business Banking, to serve the small and medium-sized enterprises (SME��) sector. It provides support to companies as they expand both domestically and internationally, and ensures a focus on the business banking segments. It offers a range of financing, both domestic and cross-border, including overdrafts, receivables finance, term loans and syndicated, leveraged, acquisition and project finance. Asset finance is offered in selected sites, focused on leasing and instalment finance for vehicles, plant and equipment. It is a provider of domestic and cross-border payments and collections, liquidity management and account services globally, delivered through its e-platform, HSBC net. It provides international trade products and services, to both buyers and suppliers, such as export finance, guarantees, documentary collections and forfeiting to improve efficiency and help mitigate risk throughout the supply chain.
CMB customers are volume users of its foreign exchange, derivatives and structured products. Capital markets & advisory is raising capital on debt and equity markets and provide advisory services. Commercial cards issuing helps customers enhance cash management, credit control and purchasing. Card acquiring services enable merchants to accept credit and debit card payments in person or remotely. CMB offers key person, employee benefits and a range of commercial risk insurance, such as property, cargo and trade credit. Direct channels include online and direct banking offerings, such as telephone banking, HSBCnet and Business Internet Banking.
Global Banking and Markets
GB&M provides tailored financial solutions to government, corporate and institutional clients and private investors globally. Managed as a global business, GB&M operates a long-term relationship management approach to build a understanding of clients��financial requirements. Sector-focused client service! teams co! nsisting of relationship managers and product specialists develop financial solutions to meet individual client needs. GB&M is managed as four principal business lines: Global Markets, Global Banking, Global Asset Management and Principal Investments.
Global Markets operations consist of treasury and capital markets services. Products include foreign exchange; currency, interest rate, bond, credit, equity and other derivatives; government and non-government fixed income and money market instruments; precious metals and exchange-traded futures; equity services; distribution of capital markets instruments, and securities services, including custody and clearing services and funds administration to both domestic and cross-border investors. Global Banking offers financing, advisory and transaction services. Its products include capital raising, advisory services, bilateral and syndicated lending, leveraged and acquisition finance, structured and project finance, lease finance and non-retail deposit taking; international, regional and domestic payments and cash management services; and trade services for large corporate clients.
Global Asset Management offers investment solutions to institutions, financial intermediaries and individual investors globally. Principal Investments includes its relationships with third-party private equity managers and other investments. GB&M is a global business, which provides financial solutions to government, corporate and institutional clients globally.
Global Private Banking
GPB works with the Company�� high net worth clients to offer ways to manage and preserve wealth. HSBC Private Bank is the principal marketing name of its international private banking business, GPB. GPB works with its clients to offer both ways to manage and preserve wealth while optimising returns. GPB accesses six advisory centers in Hong Kong, Singapore, Geneva, New York, Paris and London. Private Banking services consist of multi-currency depo! sit accou! nts and fiduciary deposits, credit and specialist lending, treasury trading services, cash management, securities custody and clearing. GPB works to ensure that its clients have access to other products and services available in HSBC, such as credit cards, Internet banking, corporate banking and investment banking.
Private Wealth Management consists of both advisory and discretionary investment services. A range of investment vehicles is covered, including bonds, equities, derivatives, options, futures, structured products, mutual funds and alternatives (hedge funds, private equity and real estate). Corporate Finance Solutions helps provide clients with solutions for their companies, working in conjunction with GB&M. Private Wealth Solutions consist of planning, trustee and other fiduciary services to protect wealth and preserve it for future generations. Its expertise includes trusts, foundation and company administration, charitable trusts and foundations, insurance, family office advisory and philanthropy.
Other
The Company�� Other contains the results of certain property transactions and unallocated investment activities. It also includes centrally held investment companies, movements in fair value of own debt, HSBC�� holding company and financing operations.
Advisors' Opinion:- [By Alyce Lomax]
Bank of America (NYSE: BAC ) has been landing in heaps of trouble lately, bringing back memories of the worst things about the financial crisis and housing crash. The most recent outrage has been allegations that it paid bonuses and even gift cards to employees who foreclosed on homeowners, lying to borrowers and its government rescuer. Meanwhile, New York has also sued HSBC (NYSE: HBC ) for ignoring state law requiring that banks give homeowners opportunities to modify their loans and avoid losing their homes.
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