A man walks near a HSBC bank branch in Rio de Janeiro, Brazil, June 9, 2015. REUTERS/Sergio Moraes
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
HSBC pledged a new era of higher dividends Tuesday, laying out plans to slash nearly one in five jobs and shrink its investment bank by a third to combat sluggish growth across its sprawling empire.It will cut its assets by a quarter, or $290 billion on a risk adjusted basis (RWA) by 2017, and slice $140 billion from its investment bank, which will subsequently make up less than a third of HSBC's balance sheet from 40 percent now.Investors were cautious about how HSBC would translate job cuts into meaningful savings given the higher cost of doing business in a tougher postcrisis business environment marked by new rules on risk and compliance.HSBC shares dipped 1.1 percent by midday, pressured also by disappointment after the bank cut its target for return on equity to greater than 10 percent by 2017, down from a previous target of 12-15 percent by 2016 .The sale of businesses in Brazil and Turkey, where HSBC is the sixth and 12th biggest bank respectively, will cut $110 billion of risk-weighted assets.Overall, HSBC will push through annual cost savings of up to $5 billion by 2017 .
FOLLOW THIS ARTICLE