(12 May 2011 – Global) In order to save US$2.5-3.5 billion (A$2.7-3.7 billion) HSBC launched cost cuts in order to redeploy capital throughout its world markets.A strategic review was published just after releasing mixed first-quarter results, and chief executive Stuart Gulliver said in a statement the cost saving is in order to streamline into growth markets.
‘This is not about shrinking the business but about creating capacity to re-invest in growth markets and to provide a buffer against regulatory and inflationary headwinds.’
Efficiency measures would include streamlining IT operations and simplifying the group’s organisation.
HSBC would also conduct separate assessments of its US cards business and branch network.
‘Our strategy is to be the leading international bank, concentrating on commercial and wholesale banking in globally connected markets,’ Mr Gulliver said.
‘We will also focus on wealth management in 18 of the most relevant economies and limit retail banking to those markets where we can achieve profitable scale.’
He also said that while they scale back in some areas, the aim is to increase capital deployment discipline, directing investment to faster growing markets and businesses, particularly in Asia.