HSBC eyes US$3b in extra cost savings
Source: Agencies |
May 16, 2013, Thursday
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Print Edition
Print Edition
HSBC yesterday said it would target additional cost savings of US$2-3 billion in the 2014-2016 period, as Europe's biggest bank cuts jobs and sells non-core businesses to bolster profitability under a restructuring plan led by CEO Stuart Gulliver.
In a strategy update, HSBC also said it would aim for a cost-efficiency ratio in the "mid-50s," up from 48-52 percent previously, a goal it had been struggling to achieve amid sluggish growth outside Asia.
It maintained its long-term target for return on equity of 12-15 percent.
The plan set out by Gulliver in May 2011 called for a complete overhaul of the bank by reducing costs, exiting sub-scale or unprofitable businesses and focusing on growth markets. When the 52 sales or disposals of non-core businesses announced since 2011 are complete, HSBC will have cut US$95 billion in risk-weighted assets, the bank said yesterday.
"We will continue to exert tight cost discipline whilst streamlining processes and procedures," Gulliver said in a statement to the Hong Kong stock exchange.
In a strategy update, HSBC also said it would aim for a cost-efficiency ratio in the "mid-50s," up from 48-52 percent previously, a goal it had been struggling to achieve amid sluggish growth outside Asia.
It maintained its long-term target for return on equity of 12-15 percent.
The plan set out by Gulliver in May 2011 called for a complete overhaul of the bank by reducing costs, exiting sub-scale or unprofitable businesses and focusing on growth markets. When the 52 sales or disposals of non-core businesses announced since 2011 are complete, HSBC will have cut US$95 billion in risk-weighted assets, the bank said yesterday.
"We will continue to exert tight cost discipline whilst streamlining processes and procedures," Gulliver said in a statement to the Hong Kong stock exchange.
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