HSBC is targeting a reduction in costs by
fine-tuning its retail banking business efforts to profitable
markets, the bank said.
During a strategy day on 11 May, HSBC’s chief
executive retail banking and wealth management, Paul
Thurston is expected to outline the bank’s approach to
focusing its retail banking business in profitable markets.
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HSBC announced at the end of April that it
would withdraw its retail banking business from Russia and keep a
representative office for corporate clients.
The news of
HSBC’s Russian retreat followed that of Barclays in
mid-February. Barclays said it was to recoil its retail and
commercial banking operations in Russia – less than three years
after it paid $745m to acquire 32-branch-strong Expobank.
HSBC’s draw back is a U-turn on its retail
banking push in Russia, which it commenced less than two years ago,
having assigned about $200m for its expansion that included the
opening of four branches in Moscow and St Petersburg as well as the
implementation of ATMs in shopping centres.
On the other hand,
HSBC has opened a new branch in Vietnam at the beginning of
May.
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By GlobalDataHSBC is also targeting
growth in its retail banking operations in Thailand following
the Thai governments easing of restrictive banking rules.
Target: cut expense to revenue
ratio from 55% to up to 48% by 2013
HSBC plans to cut its annual costs by 42% – or
$2.5bn – to $3.5bn and targets an expense to revenue ratio of
between 48% – 52% (compared with last year’s 55%) by 2013.
In the US, HSBC is reviewing its credit card
business and branch network strategy.
Having lost $7.74bn in 2009, HSBC’s US arm posted a profit
before tax of $454m.
Other business units that the bank plans to
cut back on include wealth management, where the focus would be on
18 – as of yet unspecified – significant markets.
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