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HSBC HOLDINGS Aims to Cut ~US$300M Cost This Yr
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HSBC HOLDINGS (00005.HK) announced measures to simplify the Group’s structure. It retained a Group-wide focus on cost discipline. It is targeting growth in target basis operating expenses of approximately 3% in 2025 compared with 2024. Its target basis operating expenses for 2025 excludes the direct cost impact of the business disposals in Canada and Argentina, notable items and the impact of retranslating the prior year results of hyperinflationary economies at constant currency. The bank aims to generate approximately US$300 million of cost reductions in 2025, with a commitment to an annualized reduction of US$1.5 billion in its cost base expected by the end of 2026. To deliver these reductions, it plans to incur severance and other up-front costs of US$1.8 billion over 2025 and 2026, which will be classified as notable items. The bank is focused on opportunities where it has a clear competitive advantage and accretive returns, and it aims to redeploy around US$1.5 billion of additional costs from non-strategic activities into these areas, over the medium term. AAStocks Financial News |
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