HSBC UK data highlights strength of UK-US business corridor
***HSBC UK data on payments and new subsidiaries show significant growth between UK and US businesses******UK businesses are optimistic about the future economic relationship between the UK and the US***
Business activity between the UK and the US is thriving according to new HSBC UK data.
In the 12 months to June 2024, year-on-year
- the value of payments made by HSBC UK business clients to the US rose by 15%
- the value of payments received by UK clients from the US rose by 5%
In the first six months of 2024, year-on-year
- UK firms acquiring US businesses or creating entirely new subsidiaries1 in the US increased by 45%
- US firms acquiring UK businesses or creating entirely new subsidiaries in the UK increased by 71%
In 1H 24, HSBC UK received more new business client referrals from HSBC US than any other market globally.
In 1H 24, HSBC US received more new business client referrals from HSBC UK than any other market globally.
Stuart Tait, Head of Commercial Banking at HSBC UK, said: “Business partnerships between the UK and the US remain strong. UK businesses view the US as an attractive growth market because of its stable economy, transparent regulatory environment and cultural similarities.
“International growth enables companies to diversify their business, with many viewing expansion into new markets as a quicker way to drive growth, rather than new product development. In the first half of this year, HSBC UK received more new client referrals from HSBC US than any other HSBC market globally.
“HSBC has a long history supporting trade between the two countries and our dedicated teams both here and in the US provide expert advice to companies looking to expand internationally.”
Wyatt Cowell, US Head of Commercial Banking at HSBC, said: “Our ambition is to be the leading international wholesale bank in the United States, and a strong US-UK corridor is critical to that objective. In the first half of this year, we received more new client referrals from the UK than any other market globally.
“We want to be the bank of choice for the global innovation economy by connecting our international clients and their subsidiaries to the UK and US markets and HSBC’s broader global network. In the coming years, we expect this special relationship will only continue to grow and strengthen.”
Business optimism
According to a HSBC UK survey2, UK businesses are positive about the US and the opportunities that exist there.
The survey of more than 1,000 business decision-makers in medium and large businesses reveals 55% are optimistic about the future economic relationship between the UK and the US. Just 16% were pessimistic, with 26% neither one nor the other. The sectors which are most optimistic are: IT & Telecoms (70%); Construction (66%); and Finance & Accounting (61%).
Continuing the optimism, nearly a third of all businesses (31%) said there was nothing whatsoever stopping them from growing in the US. More than a quarter (27%) of respondents said that while they were not currently doing business with the US, they would consider doing so in the future. When asked how further business with the US could be encouraged, respondents pointed to an improving exchange rate (30%) and readily available advice from either Government or banks on how they can expand (28%).
Stuart Tait added: “We know the US is a market our clients want to expand into. Not only can we connect businesses with supply chains, we also offer a full range of services to support international expansions including flexible finance, global payments solutions and foreign exchange products.”
Media enquiries to:
Hannah Langston, Media Relations, HSBC UK, hannah.langston@hsbc.com
Notes to editors:
- Subsidiaries are companies belonging to a parent company.
- All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1015 B2B decision makers. Fieldwork was undertaken between 2nd - 10th September 2024. The survey was carried out online. Businesses surveyed had a minimum of 50 employees.
HSBC UK
HSBC UK serves over 14.7 million active customers across the UK, supported by 23,700 colleagues. HSBC UK offers a complete range of retail banking and wealth management to personal and private banking customers, as well as commercial banking for small to medium businesses and large corporates. HSBC UK is a ring-fenced bank and wholly-owned subsidiary of HSBC Holdings plc.
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$2,975bn at 30 June 2024, HSBC is one of the world’s largest banking and financial services organisations.