The inaugural HSBC UK Corporate Tracker report, which records the location and activity of the UK’s 13,544 large corporates, reveals that the two Scottish cities are home to a combined 233 large companies – 118 in Edinburgh and 115 in Glasgow. Together they employ nearly 315,000 people and have a collective turnover of more than £71 billion.

According to the report, in total, there are 622 large corporates in the whole of Scotland, with the largest companies by headcount including First Group, John Wood Group and The Wier Group.

HSBC UK defines ‘large corporates’ as companies with annual turnover over £36 million, a balance sheet over £18m, and/or more than 250 employees.

The professional, scientific and technical sector makes up the largest proportion of large corporates in the two cities, followed by administrative and support services. Edinburgh’s largest cluster was in financial services and is home to a large number of banks and accountancy firms, and a significant presence of asset managers, fintech companies, and professional services providers.

According to HSBC UK’s tracker, around 18% of the large corporates in Edinburgh and Glasgow have foreign parent companies, which is below the national average (24%). The tracker suggests British businesses must consider international expansion to secure growth.

Doug Baikie, head of Corporate Banking North at HSBC UK, said: “The corporate sector in Scotland is significant.

“Our research signals a huge opportunity for Scotland to enhance its profile on the international stage.

“Closing the gap in foreign investment can yield both economic and political dividends, and there is a clear opportunity here for policy that recognises the strongest sectors and encourages competition for international capital.”

Large companies in the UK currently fall into three main sectors:

• Finance (2,662 or 19.5%)
• Professional Services (1,951 or 14.5%), and
• Manufacturing (1,667 or 12.4%).

London has the highest concentration of large companies (4,550 or 33.7%). The North-East and Northern Ireland have the lowest concentrations, with 343 (2.5%) and 243 (1.7%) companies, respectively.