HSBC will reduce risk-weighted assets and make big savings – Dagens Industri

HSBC to reduce risk-weighted assets and make great savings

                  2015-06-09 08:42
             

 (SIX) The British bank HSBC plans to reduce its risk-weighted  assets and implement cost savings of 4.5-5.0 billion  dollars in 2017, according to a press release.       The measures are part of a strategy transformation that also means that  the bank will sell its operations in Turkey and Brazil. IN  Brazil will, however, remain to serve large customers.       The cost savings of 4.5-5.0 billion by 2017 may be in  relation to the bank about 40 billion in operating expenses during the  2014. The cost of achieving the savings are estimated to be 4.0-4.5  billion by 2017.       The savings means 22000-25000 services will  disappear from the bank, according to Dow Jones Newswires. At the end of  In 2014, the bank had 258,000 employees.       Risk-weighted assets will be reduced by 290 billion. The  the figure can be compared with risk-weighted assets at 1.213 billion at  end of the first quarter. Worth noting the risk-weighted  assets that the bank  writes that they should be reduced by "at least approximately  25 percent "and redeployed to activities with higher returns.       While the bank scales back on some places, the  invest in others, mainly in Asia and particularly in the Pearl River Delta in  Guangdong province in China.       The goal of it all is to achieve a return on equity that is  higher than 10 percent by 2017, revenues should grow faster than  costs and dividend payments to shareholders will increase.      Andreas Johansson, tel +46 31 350 6483  mailto: andreas.johansson@six-group.se  www.blogg.six.seSIXNews  SIX News