HSBC (HBC) Ticks Higher on Improved Cost Savings Plan
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HSBC Holdings (NYSE: HBC) is up Wednesday following reports that the bank is planning to implement some serious cost controls.
HSBC, in a strategy update, said it planned on $2 billion to $3 billion of cost savings spanning from 2014 to 2016. Reuters noted today that the bank plans for a cost-efficiency ratio in the mid-50 range, which is up from a 48 to 52 range previously expected.
Long-term return on equity is still targeted at 12 percent to 15 percent.
The initial plan was rolled out by CEO Stuart Gulliver in 2011. In it, HSBC aimed for a complete overhaul by cutting costs, exiting sub-scale or unprofitable businesses, and focusing more on growth markets. Since then, the bank has cut $95 billion in risk-weighted assets as well as disposed or sold about 52 non-core businesses.
Shares are up about 0.7 percent.
HSBC, in a strategy update, said it planned on $2 billion to $3 billion of cost savings spanning from 2014 to 2016. Reuters noted today that the bank plans for a cost-efficiency ratio in the mid-50 range, which is up from a 48 to 52 range previously expected.
Long-term return on equity is still targeted at 12 percent to 15 percent.
The initial plan was rolled out by CEO Stuart Gulliver in 2011. In it, HSBC aimed for a complete overhaul by cutting costs, exiting sub-scale or unprofitable businesses, and focusing more on growth markets. Since then, the bank has cut $95 billion in risk-weighted assets as well as disposed or sold about 52 non-core businesses.
Shares are up about 0.7 percent.
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