The HSBC said on Wednesday it intends to cut $ 1.8 billion in costs by the end of next year, as its new CEO restructures the bank to increase profits in the midst of divergent interest policies and profound geopolitical changes.
The bank registered gains above market expectations in 2024 and announced a new repurchase of stocks worth US $ 2 billion, expected to be completed before its next disclosure of results.
The company presented the results while the executive president, Georges Elhedery, advances with a expensive restructuring in a divergence scenario in global interest policies, with the euro zone indicating space for cuts, stability in the United States and expectations of increased Japan increase .
The HSBC, which makes most of its revenue and profit in Asia, said its performance in 2024 took place in a panorama of “significant geopolitical uncertainty intensified by numerous and important elections around the world.”
The tension between China and the US worries HSBC investors, as the bank considers the country asian an important market, where it has invested billions of dollars in recent years. This concern has intensified since the return to the White House of President Donald Trump, who, in his first term, implemented a series of anti-china trade policies.
Elderry became CEO of HSBC in September and has since been working to increase income and intensify the bank’s focus in Asia.
Continues after advertising
The London -based HSBC released a profit before tax payment to 2024 of $ 32.3 billion as revenue resisted the impact of falling interest rates. The result exceeded US $ 30.3 billion recorded in the previous year and average estimates of analysts of US $ 31.7 billion.
The financial institution said it intends to reduce costs by about $ 300 million by 2025, with the commitment of an annualized cut of $ 1.5 billion in the cost base by the end of next year.
“We renew vigor in the search for efficiencies that will optimize our resource allocation, whether geographical, product lines or balance sheet,” said Leadery, in the bank’s declaration of results.
Continues after advertising
“This will improve the way we manage costs and capital actively and dynamically, and how we direct investments,” he said.
HSBC shares, listed in Hong Kong, rose up to 1.8% after the announcement of profits, its highest value since February 2011. The largest rate in the market has dropped 0.4%.
