Adhering to the steady and conservative strategy of the European financial industry, these two regional banks have developed very steadily and can provide stable cash flow every year. However, because they are so stable, the original bank board of directors has a strong desire to sell.
Why?
Germany's Bayerische Bank was founded in 1884. It has been developing for more than 100 years and is still near Bavaria. It cannot even cover the entire northern Germany.
The traditional habits of Europeans are extremely powerful. Germans who have been saving money at Commerzbank (Frankfurt) since their grandfathers are still loyal users of Commerzbank.
Just like they are fans of the German football team Eintracht Frankfurt, they have continued to support this team unswervingly for more than 100 years and through several generations.
This has nothing to do with marketing and customer service, but the force of traditional habits that no one can change.
This situation is simply a disaster for European bankers. They have been developing in Bavaria for more than 100 years and have done everything to the extreme, turning this land into an iron barrel.
Other big banks can't get in, and it's impossible for me to expand outward.
Rich European families that have always adhered to tradition can no longer hold on and are eager for innovation and change.
Every family has scriptures that are difficult to recite.
As the traditional European wealthy families behind the control of these private banks, with the progress of the times, the younger generation has been baptized by the new wave of high-tech Internet, and they are even more disdainful of these decadent family assets.
In the eyes of young people;
Not developing means regressing, and standing still means being abandoned by the times, which is tantamount to committing suicide...
The fierce collision between modern business philosophy and tradition has intensified the rifts and quarrels within the family. The Paris Fortis bank controlled by the family of Count Mesut Ozil of the Kingdom of Belgium is a clear example.
Just in April 2003
Count Mesut Ozil suffered a sudden cerebral hemorrhage due to a fierce quarrel within the family and was sent to the King's Hospital in Brussels. It took 12 hours of craniotomy to save him from death.
The situation at Germany's Bayerische Bank is slightly different, but the board of directors also hopes to seek a sale in exchange for an opportunity to break out of the rigid circle of Bavaria.
HSBC saw exactly this opportunity;
HSBC, which is listed in London and Hong Kong, hopes to improve its presence in continental Europe, so acquiring local small and medium-sized banks is the best strategy.
These European banks have sound management, good profitability, and unique operating secrets, making them good M&A targets.
Once connected to the international network of HSBC, you can reach the whole world with an HSBC card. This is by no means a meticulous service that local banks can provide, and it is extremely attractive to both corporate users and individual users.
Traditional European aristocratic families disliked the fact that the operations of these banks were too stable and had not changed for decades or hundreds of years. Wang Yaocheng took a fancy to this and could provide a stable rate of return of more than 7% every year.
With the blessing of the golden brand of HSBC, it is not a problem to expand the user base of small and medium-sized enterprises. Coupled with the internationally leading lean management, no matter what, we can add two or three points to this stable rate of return.
Since then, the rate of return has been considerable.
Don’t ask why, multinational banks are just so awesome!
HSBC can not only provide thoughtful financial services all over the world, but also, through consortium linkage, can provide international air passenger and cargo transportation, private car transfers to high-star hotels in Europe, the United States, Southeast Asia, mainland China, Japan and South Korea, and global warehousing and logistics services.
, direct intercontinental delivery of hundreds of thousands of goods, VIP shopping treatment in tens of thousands of stores of Carrefour, Watsons and its 12 retail brands, the benefits are simply endless.
Looking to the future
As Hong Kong Global Telecommunications Company develops into European countries, it can even provide global telecommunications services. It can travel all over the world with a single card and provide personal services for roaming around the world. Which customer can resist such a strong temptation?
Which other multinational bank can provide such thoughtful and comprehensive services?
Two and one comparison
The distance between local banks and multinational banks is vastly different, and their competitiveness is not at the same level.
For Germany's Bayerische Bank, which has been operating for more than a hundred years, this is the depressing point;
There are more than a dozen regional banks of similar strength in Germany alone. Although the Bayerische Bank is considered the leader among them, it is still unable to break through these iron-barrel local markets, and it cannot even unify northern Germany.
It is suppressed by the national Deutsche Bank, Commerzbank, KfW, Uebabank and DZB, which are larger in scale and volume than itself.
Bayerische Bank ranks roughly sixth to seventh nationwide, in the second camp.
Compared with its peers in the financial world, Bayerische Bank is not big enough, nor strong enough, nor powerful enough to break this desperate deadlock.
It is understandable that the bank directors would give up on this completely unpromising undertaking.
Don't be afraid of not knowing the goods, be afraid of comparing goods.
Wang Yaocheng is confident about HSBC's expansion in Europe. What the Bavaria Bank cannot do does not mean that HSBC cannot do it, because the golden brand of HSBC represents unimpeded access to the world.
As long as your wallet is thick enough and you can provide global financial services and other value-added services, it will definitely be worth every penny.
From the perspective of the overall environment, the EU is more tolerant and open to Hong Kong capital.
There are many targets for mergers and acquisitions in Europe, and there are hundreds of powerful local banks. If you don't want to sell, there are others who are willing to sell, and you can always find a suitable target that is willing to sell.
in the manor
Wang Yaocheng thought for a moment and understood Mr. Raffarin's intention. The French government welcomed the introduction of international capital with both hands.
HSBC's acquisition of Fortis Paris brought not only international capital, but also HSBC's global services. Cathay Pacific and KLM Royal Dutch Airlines expanded the EU market, and many companies under the consortium entered the EU market.
It can also help French large and small and medium-sized enterprises to go global, establish a virtuous cycle of two-way flow, and promote the development of logistics, people flow and trade. It is a matter of mutual benefit.
BNP Paribas Fortis obviously does not have this capability. This is the huge gap between local banks and multinational financial groups.
In terms of globalization, UBS Group is not inferior to HSBC in just one or two points. It is more caused by traditional conservative ideas and the inability to let go of the arrogant airs of European aristocrats.
Behind the control of UBS is the very famous Habsburg family in Europe. This is a distinguished family with close blood relations with the royal families of various European countries. It was once the controller of the huge imperial power of the Austro-Hungarian Empire.
therefore
UBS's senior executives in crisp suits looked down upon their U.S. banks and Wall Street peers, let alone financial institutions elsewhere, which they viewed as pure wilderness.
All kinds of ridicule and ridicule jokes are endless...
A gorilla wearing a tie, a redneck hanging out on Wall Street, a profit-seeking speculator, a Detroiter with black fingernails, a vulgar hip-hop New York accent or a black garter-socks obsessive.
Of course, there are no good words to say about Wang Yaocheng, chairman of the board of directors of HSBC. Carl von Habsburg, the patriarch of the Habsburg family, once said contemptuously;
The British guys are really crazy. How could Smith Bank sell it to that yellow boy? He didn't even wash the mud off his legs. I'm afraid he was so happy when he saw the banknotes in the bank vault, right?
Wang Yaocheng just smiled casually when he heard these strange rumors;
Okay, very good!
This shows that the top management of UBS Group did not pay attention to HSBC as a rival, which is a good thing for HSBC to expand its financial outlets in continental Europe.
Now that we have entered the 21st century, people like the Habsburg family are still stuck in the 19th century with their rigid minds, living in their own dreams of becoming powerful.
This one is vulgar, that one is low, none of them are as noble as him.
What is the use of such a fantasy dream?
As the only two strong players in the European financial market, the relevant institutions of HSBC have conducted very thorough research on UBS Group.
This 141-year-old bank in Zurich does have its own unique features in operations.
Judging from various indicators of banking operations, HSBC has an overwhelming advantage. Its asset size is more than twice that of its opponent, its bank branches around the world are 3.5 times its number, and its annual turnover is 3.12 times. It is comprehensively ahead of its opponents.
UBS Group's only strength lies in its investment banking business, which is stronger than HSBC and firmly holds the top spot in Europe.
As early as 2001, UBS Group completed the acquisition of the famous American investment bank Pratt & Whitney for US$12 billion, further strengthening its position as a primary dealer in the US market.
In investment banking business in the US market
UBS Group closely follows famous investment banks such as Goldman Sachs, Merrill Lynch, Morgan Stanley and JP Morgan, ranking fifth, surpassing Citibank, Lehman, Bank of America and HSBC, and its business is doing well.
rise.
The ultimate reason for HSBC's weakness in investment banking lies with Chairman Wang Yaocheng.
Similarly, Mo Yuxuan, CEO of HSBC, whose business philosophy tends to be conservative, does not agree with the excessive development of radical investment banking business.
In March 2000, the Internet high-tech bubble burst.
International banks that invested heavily in U.S. hedge funds and stock markets and bond markets suffered heavy losses, including the world's largest Mizuho Mitsubishi Bank, UBS, Deutsche Bank and Barclays.
As for the domestic banks in the United States, one by one, basically they will lose their skin if they don't die.
Mr. Mo Yuxuan still has lingering fears when he thinks about the tragic situation of people dying of hunger everywhere.
It was this rare opportunity that enabled HSBC to enter the North American market on a large scale, and has successively acquired 11 small and medium-sized US-owned local banks, integrating and developing to its current huge scale.
Therefore, Mr. Mo Yuxuan strongly disagrees with the radical investment philosophy of U.S.-funded banks. Packaging and securitizing some high-risk assets and junk assets is a wrong move that only breeds trouble.
Wang Yaocheng, Chairman of the Board of Directors, strongly agrees with Mr. Mo Yuxuan's business philosophy. Strict control of financial risks and sound management have become mainstream ideas, which run through the entire global business operations of HSBC Bank.
In terms of business choices, HSBC would rather choose a business with low profit margins and stable operations, rather than get involved in high-risk junk bonds and participate in Wall Street's financial games.
HSBC focuses on high-net-worth private business, rolling out huge assets with less capital, which can bring higher returns. Its risk management is highly concentrated and tends to be conservative and prudent.
Although this kind of business strategy is unlikely to achieve explosive performance growth, it is more stable and practical and has extremely low risks.