HSBC to cut costs, sell assets as 2019 profit slumps 33%; warns of coronavirus hit

HONG KONG - HSBC Holdings on Tuesday unveiled plans to cut US$100 billion in assets, slash its investment bank and restructure in the United States and Europe, as it launched its biggest overhaul in years in a bid to improve returns.

While the London-headquartered bank has benefited from billions of dollars of investment in Asia over the last few years - mainly in China - sluggish performance in Europe and the United States has pulled down its returns. "This should create a leaner, simpler and more competitive group that is better positioned to deliver higher returns for investors," Quinn said in a statement, referring to the restructuring initiatives.

The bank said it planned to achieve a reduced adjusted cost base of US$31 billion or below in 2022, underpinned by a new cost reduction plan of US$4.5 billion, and return of tangible equity in the range of 10 per cent to 12 per cent in the same period.HSBC is in over 50 countries across Europe, North America, the Middle East and Asia - with the latter accounting for roughly half of its revenue and 90 per cent of profit.

The bank will also reduce its sales and research coverage in European cash equities with a focus on supporting equity capital market transactions, it said.

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