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HSBC planning additional cost savings up to 2016

HSBC has revealed it will be targeting additional cost savings of around $2-3 billion between 2014 and 2016.

Under a restructuring plan led by chief executive officer Stuart Gulliver, HSBC will cut jobs and sell non-core businesses to boost overall profitability.

HSBC, which is Europe's biggest bank, said it would aim for a cost efficiency ratio in the mid-50s, up from the 48-52 per cent range it currently produces.

In a statement given to the Hong Kong stock exchange, Mr Gulliver announced the sale or closing of 52 businesses in order to revive earnings and 46,000 job cuts, which has resulted in a $4 billion reduction in annual costs since taking on the job in 2011, exceeding his initial target.

"We will continue to exert tight cost discipline whilst streamlining processes and procedures," Mr Gulliver remarked.

According to Mr Gulliver, HSBC's financial strength will allow it to invest and increase dividends. On 4 March, the banks increased its 2012 dividend by ten per cent from 2011 to 45 cents a share.

By Asim Shah