The last time in its 138 year history that the Hong Kong and Shanghai Banking Corporation (HSBC) took such a transformational step was in 1992 when it bought Midland Bank, one of the UK’s main banks, vaulting it into the major league from its Hong Kong base. Its latest move, buying US consumer group Household International, is arguably even more revolutionary, as it brings a totally new business into the bank which executives see as being at the forefront of its expansion plans.
“The broad strategic decision is this: two-thirds of every economy in the world is based on consumer expenditure and the more you can get your organisation to sit astride that, frankly, the better for your business,” a pink-shirted Sir John Bond told The Banker in his 41st floor office in the bank’s swanky new London headquarters at Canary Wharf.
