A pioneer in pinstripes

MISTAKES don't seem to have held back Sir John Bond's climb to the top of banking's greasy pole. The HSBC executive chairman is surprisingly frank about his shortcomings. 'One or two case studies used in our training centre as examples of bad lending decisions are my decisions,' he jokes. 'So I have contributed in that way to the development of HSBC.'

Bond had been repeating the adage that good judgment comes from experience, and experience comes from bad judgment. 'I think the secret to success is to surround yourself with people who are smarter than you are,' he says. 'As chairman, I lead the team. What I bring is experience.

'I've been in many situations where we've tried to retrieve bad judgment. I've lived and worked in Asia for over 25 years, in America for four years and in the UK for the past 11 years.

'Along the way I have done every job, from serving at the counter. The only one I haven't done is to write a computer program - and it's in the shareholders' interests that we keep it that way.'

Bond, who joined HSBC 43 years ago, modestly claims to have been 'a bit player' in transforming a $40m regional bank based in Hong Kong into the world's second-biggest global finance house - after Citigroup - valued at $160bn (£90bn).

Of his current role, Bond says: 'You want somebody at the helm who says 'we've been through this before. We know how to fix it. Let's get on and do it.'

Bond comes across as a courteous, conservative, quintessentially English gentleman. Yet, under the starched white collar, tie and pinstripe suit, is a man with relentless drive. He will be 63 in July, but remains lean and fast-moving - a result of his daily run and spare diet. He drives a silver Porsche, though his pride was dented by a cab driver who asked him if it was his son's car.

Bond bristles at the mention of succession. The bank's rules allow him to go on until he is 65, but longer on a special vote. He will leave when his job is done, he says firmly. 'Nobody will remember I was here after I have gone.'

Since becoming chairman in 1998, Bond has steered HSBC into new businesses and territories in a series of daring deals, spending a total of £14.5bn in France, Mexico, the US and Brazil. HSBC has also put about £560bn into China and is poised to buy into India.

But his boldest bet to date was the £8bn takeover of Chicago's Household International in March 2003.

Household lends at high rates to customers with poor credit histories. Despite doubts about HSBC going 'downmarket', that deal has paid off handsomely. Household scored 14.3%of the group's 2003 $12.8bn pre-tax profits. So is HSBC on a roll? 'No,' Bond laughs. 'Though I can't see them, I can smell banana skins, so I'd be very far from saying we are on a roll. But I think we have the ability to raise our game through organic growth.

What about fears for the global economy? 'Great opportunities arise out of instability,' he declares. The important thing is to be financially strong when the storm breaks.'

Bond, whose basic salary is £1.2m, claims his background was 'very ordinary', then tells you his father ran away to sea aged 15 and his mother climbed in the Himalayas. He met his wife Liz in Malaysia, and he speaks Bahasa Malay. The couple have three grown-up children.

At the moment Bond's sights are on the 'raw demand' for financial services in Russia, China and India. He is looking to 'plant the revenue streams of tomorrow'.

But when tomorrow comes, Bond and his wife will lock up their west London home and he will fulfil his dream of riding across America on a Harley-Davidson.