HSBC plans cost reductions

11 May 2011

HSBC is planning significant cost reductions in order to prepare for stricter capital rules.

The bank - which is the largest in Europe by market value - is looking to cut expenditure by between $2.5 billion and $3.5 billion by 2013 as it attempts to centre its investment in quicker-expanding economies, Bloomberg reports.

Chief executive officer at the lender Stuart Gulliver said that the company is aiming for consistent business models to be implemented in wealth management, as well as in both consumer and commercial banking.

The industry figure explained: "We will increase capital deployment discipline, directing investment to faster-growing markets and businesses as we scale back elsewhere."

He added that the bank is also looking to further streamline its information technology processes.

HSBC recently posted a 14 per cent profit decline for the first quarter of 2011, when compared to the same period last year, following an increase in costs against revenue.

By Tony Aynsley

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