HSBC targets $1.5b in annual cost savings after revamp

HONG KONG, Feb 19 (AFP): Banking giant HSBC said Wednesday that CEO Georges Elhedery's plan since October to simplify the company's structure and geographic setup will yield $1.5 billion in annual cost savings by the end of 2026.

"Our cost target includes the impact of simplification-related saves associated with our announced reorganisation, which aims to generate approximately $0.3 billion of cost reductions in 2025, with a commitment to an annualised reduction of $1.5 billion in our cost base expected by the end of 2026," the London-headquartered bank said in an exchange filing.

Elhedery's plan for a "simpler, more dynamic, and agile organisation" has shaken up Europe's largest bank, whose shares in Hong Kong have rallied to an 11-year high.

HSBC on Wednesday said pre-tax profits rose six percent to $32.3 billion in 2024, while profit attributable to shareholders edged up two percent to $22.9 billion.

"Our strong 2024 performance provides firm financial foundations upon which to build for the future," Elhedery said in a statement.