Mission to get firms to forge links with Canada

Martin Lunt, HSBC’s regional head of corporate banking, said Yorkshire athletes’ success at the London Olympics could also create a “feelgood factor” that will lead to more jobs and investment.

He stressed it was “business as usual” in Yorkshire for HSBC, despite the money-laundering allegations that have cast a cloud over the bank’s reputation in the US.

Mr Lunt’s team specialises in financing businesses with turnover of more than £25m, and it operates from offices in Leeds, Sheffield, Hull and Newcastle.

Recent transactions completed in Yorkshire by HSBC include a multi-million pound securitisation deal for Leeds-based fleet management firm Zenith, which provided the company with income through the capital markets.

“Recent GDP figures reveal that there have been three consecutive quarters of negative growth which means technically, we are in recession,’’ said Mr Lunt. “However, the picture is not all doom and gloom – unemployment has fallen to 8.1 per cent and inflation recently fell to its lowest level since November 2009.

“Hopefully, all the praise that Yorkshire is getting for the performance of its Olympic athletes will create a feelgood factor that will boost confidence and, in turn, the regional economy.”

According to Mr Lunt, many businesses are in better shape than at any time in his 33-year career.

He added: “Over the past four years, businesses have concentrated on preserving cash and continuing to pay down their debt.

“They have got their house in order and are well positioned to go out and expand.

“More businesses are thinking internationally than ever before. As part of a regular programme of exchanges, staff from HSBC in Yorkshire have gone out to Hong Kong, Dubai and Brazil in order to make the most of our global networks, building connectivity for the benefit of our customers.

“Next on the list, we’re looking at arranging a secondment to Canada for one of our export managers, as we look to help customers in Yorkshire who aren’t currently doing business in Canada.

“We want to get somebody from HSBC’s operations in Canada to come over to Yorkshire and tell us what it’s like to do business there.”

Altogether, HSBC has got 200 international managers in the UK, and the bank recently appointed three more managers in Yorkshire to work with corporate clients.

“The major areas of growth are Brazil and China,’’ said Mr Lunt.

“We have experienced a number of enquiries around these markets which are experiencing fast growth.

“Next month, we have arranged for a Brazil trade expert to come to Yorkshire and meet with clients who are interested in branching out to this market to discuss the opportunities and ‘dos and don’ts’ when trading there.”

Mr Lunt said HSBC was committed to lending to viable businesses, and was currently approving at least 80 per cent of its applications from SMEs (small and medium-sized enterprises).

He added: “Overall, people are looking more strategically at opportunities now and on a wider field.

“There are a number of refinancings which the team are working on in a variety of sectors.”

HSBC has attracted negative publicity in recent weeks, after a US Senate investigation revealed that the bank had inadvertently allowed rogue states and drugs cartels to launder billions of pounds through its US arm.

Last month, the bank warned that the total amount of fines and penalties levelled against it could be “significantly higher” than the $700m (£445m) it had set aside so far.

The findings, which accused HSBC of ignoring warnings and breaching safeguards that should have stopped the laundering of money from Mexico, Iran and Syria, led to the resignation of head of compliance David Bagley.

In a statement issued in July, HSBC chief executive Stuart Gulliver said: “We are profoundly sorry for our mistakes, and are committed to putting them right.”

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