BK7019 bank financial risk management

BANK FINANCIAL RISK
MANAGEMENT
Name of the Student –
Name of the University -

INTRODUCTION
• Purpose of risk management in case of Lloyd bank & HSBC bank is to
detect the financial problems before they takes place & handle the
uncertainties that exists in the industry
• Effective risk management invokes strategic approach in these banks
that will mitigate adverse impacts yet will be able to optimize the
objectives of the firms
• Financial ratios help the banks to examine the state of efficiency,
liquidity as well as gaps in financial performance of the banks and in
segments where it can improve its functionality

BACKGROUND INFORMATION
• Being a multinational company HSBC bank is the 7th largest banking and
financial service group that was established in 1865 in British Hong Kong
• HSBC expanded its business worldwide and currently have its presence in
73 countries
• With more than 6100 offices and its global headquarter in London, HSBC
encompasses nearby 216000 shareholders possessing 228687 employees
• HSBC’s market capitalization of 182 billion US dollars by 2017 followed
by having a total number of assets of $ 2.521 trillion, total equity of
190.24 billion US dollars
• operating income of the company is close to $ 14.792 billion and the net
income is of $ 11.879 billion by 2017.

• Operating income of HSBC is $ 14.792 billion and the net income is of
$ 11.879 billion by 2017
• HSBC is involved in retail banking, mortgage loans, insurance, wealth
management, private banking, investment as well as corporate
banking and has a customer base of 51 million worldwide
• . Lloyd bank on the other hand is headquartered in London, and is
among the big four clearing banks involved in retail and commercial
banking
• Lloyd bank provides insurance services and by 2016 possessed an
employee strength of 45856
• The operating income of Lloyd bank is 17.5 billion, followed by net
income of 16.6 billion and average income earning banking assets of
436 billion