HSBC plans to cut annual costs by up to another $3 billion and may axe a further 14,000 jobs as Europe's biggest bank strives to drive profits in the face of sluggish growth outside Asia, an Economic Times report said.
HSBC's new cost-cutting drive, stretching out to 2016, will enable the bank to boost capital and grow dividends, but Chief Executive Stuart Gulliver softened a key target to get costs to below 52 percent of revenue. The new goal is to keep the ratio near 55 per cent. Gulliver has already sliced $4 billion off annual costs and culled 46,000 staff under an overhaul he began when he became CEO at the start of 2011.
The bank said employee numbers could fall to between 240,000 and 250,000, from 261,000 at the end of 2012 and 254,000 when current disposals and announced cuts take effect.
Read the full report here