To achieve the reduction, the bank said it planned to incur 1.8 billion dollars (£1.4 billion) in severance and other up-front costs over the next two years, as well as redeploying around 1.5 billion dollars (£1.2 billion) from “non-strategic activities” to areas where it has “a clear competitive advantage”.
The announcement said the company’s reorganisation aims to generate cost reductions of 0.3 billion dollars (£0.24 billion) in 2025 with the commitment to the 1.5 billion dollars (£1.2 billion) annualised reduction in the cost base expected by the end of 2026.
Profit after tax increased by 0.4 billion dollars (£0.3 billion) to 25 billion dollars (£19.8 billion).
The UK’s largest bank confirmed its plans to make cost reductions as it revealed a pre-tax profit of 32.3 billion dollars (£25.6 billion) for 2024 on Wednesday in its annual results.
HSBC is targeting savings of 1.5 billion US dollars (£1.2 billion) by the end of 2026, the firm announced.
