Opportunities--
*The Middle East.
Other banks are running scared of this region. However, HSBC has run
its regional business locally and been rewarded for its efforts with
numerous awards and honors for the Middle East market. HSBC is a
trusted name there, and the company has taken advantage of Iraq's new
democracy by creating a presence in the country. HSBC is the largest
international bank in the Middle East.
*Emerging economies.
In addition to the growing Chinese middle class, Brazilians and
Indians are beginning to emerge as growing consumers, and therefore
growing consumer spenders. Some denizens of these countries
previously did not even own a bank account, but companies like HSBC
are poised to move in and take advantage of the growing middle class
in these areas. In places like Argentina and Turkey, HSBC experienced
pre-tax profits of 50% last year. This is where it is growing the
most. By investing in these countries, HSBC can offset problems it
may have as spending in the US and UK declines.