The following article was published in the UK Financial Times.

The chief executive of HSBC private banking was not even born when Roger Bannister smashed the world record for running a mile in under four minutes. But Clive Bannister, 45, who joined HSBC 10 years ago, remains "intensely proud" of his father's record-breaking success. "My father represented an era where it was still possible to be an amateur - for he was training to be a doctor - and yet to be world class," he says.

Mr Bannister, who is married with three young sons, runs himself and was captain of the running team at school but spent more time playing rugby. "Yes, I run to avoid the proverbial heart attack. Now my children cycle and I puff along behind them. There was a time I could run faster than they could cycle but not any more."

However, as head of group private banking at HSBC, the world's second largest bank, he has precious little time for recreation as he travels around the 41 centres worldwide that have been rebranded as HSBC Private Bank.

Since Mr Bannister joined HSBC 10 years ago from consultants Booz Allen Hamilton, there has been a sea change in the importance of the private bank to the HSBC group. A decade ago, HSBC's private bank employed 1,000 people in about 10 locations and made less than $80m in pre-tax profit. It consisted of fragmented businesses ranging from Wardley Private Bank to Samuel Montagu.

Now, HSBC Private Bank employs 5,000 staff, is one of the five largest banks in the world and, reported pre-tax profits of $560m in 2003. The bank, which caters for wealthy individuals, has clients' funds under management of $169bn.
The sheer size of the HSBC group - which made pre-tax profits of $12.8bn in 2003 - means the private bank remains a relatively small part of the whole. However, in recent years, HSBC has expanded the private bank organically and through strategic acquisitions. Its footprint in the US was enhanced when it bought Republic New York in 1999 and CCF in France.

Last year HSBC Private Bank filled a strategic gap when it bought Bank of Bermuda for $1.3bn, which bolstered HSBC's expertise in areas such as trusts.

"The Bank of Bermuda brings an onshore banking capability in Bermuda which is of great interest to the group," says Mr Bannister. "It has a first class custody business which makes us the largest custodian in Asia and has a very important third party fund administration business. Bank of Bermuda has brought with it remarkable trust capability which, combined with our own, makes us the largest private trust bank in the world outside the US."

He adds: "We can now make trusts in 23 jurisdictions - they go all the way from New Zealand across to the Channel Islands."

The private bank now appears poised to grow organically although Mr Bannister insists he will not be "blind" to potential acquisition opportunities.

"The bank does not build its business on acquisitions. We have a complete organic game plan," he says. This strategy is to allow the private bank to do more with existing clients, have a wider range of products and work more closely to source new customers from other parts of the HSBC group.

The bank has specialist practices dealing with clients involved in specific lines of business, such as the media, shipping and diamonds and jewellery. It also sees opportunities for its private bank in Asia. A report by Merrill Lynch/Capgemini identified Asia as having one of the biggest increases in wealthy people with more than $1m to invest.

"We have 1,000 people in Asia, 2,500 in Europe and the rest are in the US. We are Asia's largest private bank."

HSBC's private bank has offices in Hong Kong, Singapore, Manila, Tapei and Toyko. Private banking is forbidden onshore in two of the fastest growing Asian markets: India and China. "You cannot do private banking in China onshore ... it is against the law."

"So what you have to do is work with individuals whose money they have a licence from the central bank to have offshore dollars associated with their business and we are careful about that."

The US also represents another huge opportunity for HSBC's private bank to win customers.

"We have a natural market in America with foreigners who go to America because of their business activity. They will know of HSBC from where they have departed and there is the familiar hexagon sign."

Mr Bannister even sees a potential benefit for the private bank on the back of HSBC's $14bn acquisition of Household, the US consumer finance business, which caters for low income customers. Although Household caters for a very different customer base, he believes there may be opportunities for third parties, such as the owners of car dealerships, which have an existing relationship with Household.

Mr Bannister says HSBC has all the expertise it needs to expand in the US organically without large acquisitions. "We have all the pieces ... we may be smaller than we would like to be but we have all the pieces and now we are going to pursue an organic strategy. This is really one brick at a time in a wall and we will get there."

Overseeing the private bank leaves Mr Bannister precious little free time for recreation. When he does have spare moments he often spends it making furniture and has made tables, chairs and even a bed. He says: "I am known by my colleagues in the private bank because they will call me on a weekend ... and there will be times when I say I'm sorry I cannot talk to you I've got a clamp in my hand or a veneering iron."

Similarly, as Mr Bannister builds and fashions the private bank, it seems destined to become an increasingly important part of the HSBC group.

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