HSBC Holdings Tuesday said it intends to sell its operations in Turkey and Brazil and targets to annual cost-saving initiatives of 4.5 to 5 billion U.S. dollars by 2017.
In a statement to the Hong Kong Stock Exchange, HSBC stated that it is now undertaking a significant reshaping of its business portfolio. "It is redeploying resources to capture expected future growth opportunities and adapting to structural changes in the operating environment."
HSBC said it is targeting a reduction of Group Risk Weighted Assets (RWAs) of about 290 billion U.S. dollars, including a reduction of Global Banking & Markets RWAs to less than one-third of Group RWAs.
The bank also plans to accelerate investments in Asia by developing its business in both the Pearl River Delta in Guangdong Province of China, and in the ASEAN region. It will expand asset management and insurance in Asia with the aim of capturing expected opportunities from emerging wealth in the region.
Furthermore, HSBC will leverage opportunities from its market leading position in Renminbi internationalization.
HSBC also announced that it plans to cut around 22,000 to 25, 000 full-time jobs, or about 10 percent of the staff, globally by 2017; and it will complete a headquarters review by the end of 2015. The bank's headquarters is now located in London.
