HSBC says will cut more costs by 2016

LONDON - Asia-focused bank HSBC announced on Wednesday that it will make another US$2-3 billion (S$2.48-3.32 billion) of new cost savings by 2016, extending its restructuring plans.

The lender said in a statement that it will seek the additional sustainable cost savings on top of its wide-ranging restructuring process that was launched in 2011.

HSBC revealed last week that it had slashed a total of US$4.0 billion from its annual costs, axing about 46,000 jobs since 2011 as part of a vast restructuring.

"We have transformed HSBC in the first phase of the execution of our strategy," said chief executive Stuart Gulliver in Wednesday's strategy update.

"We have announced the closure or disposal of 52 non-strategic or underperforming businesses, achieved $4.0 billion of annualised sustainable cost savings and generated double-digit loan growth in 15 priority markets.

"HSBC is now simpler, easier to manage and ready to take advantage of growth opportunities."

HSBC announced last week that first-quarter net profits more than doubled to US$6.35 billion, aided by sliding bad debts, deep cost cutting and a solid performance in Britain and Hong Kong.

Last year, however, HSBC had posted a 16.5-per cent slump in net profits as it was hit by US money-laundering fines, mis-selling scandals, rising taxation and a vast accounting charge.