With less than a year left in the first phase of its restructuring plan, HSBC is targeting an additional US$2 billion to $3 billion in cost savings between 2014 and 2016, as the lender axes jobs and sells noncore businesses.
HSBC said yesterday it may sell its private banking business in Monaco as part of the ongoing strategic review. The lender said in a statement that it had received "unsolicited expressions of interest" for the unit.
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HSBC has already achieved US$4 billion of annualised sustainable cost savings under a strategic three-year restructuring plan launched in May 2011.
The lender re-affirmed in a strategy update that its target range for return on equity is 12% to 15%, and that the bank was "on track with its cost-savings plan", having cut US$80 billion in risk-weighted assets from its balance sheet through disposals of 52 businesses across the globe.
Chief executive, Stuart Gulliver, said in a statement: "We will continue to exert tight cost discipline whilst streamlining processes and procedures."
HSBC is on track to reach Gulliver’s goals of getting costs below 52% of revenues and return on equity above 12% in 2013, with its first-quarter results showing 46,000 fewer staff members across the bank.
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