HSBC (0005) could attract over 1 million new customers every year over the next two decades, as it expects to meet its US$1.5 billion (HK$11.7 billion) annual cost-saving target six months ahead of schedule, its chief executive Georges Elhedery said on Wednesday.
Elhedery said at HSBC's investor day event that the US$1.5 million in savings is equivalent to about 8 percent of staff expenses. He said the group has saved US$1.4 billion so far, and targets to complete the plan by the end of June this year.
Elhedery also noted that Hong Kong, as a super-connector, attracts mainland Chinese enterprises, especially middle-class clients, seeking global asset allocation, and is expected to surpass Switzerland as the world's largest cross-border wealth management hub. He also plans to accelerate the privatization of Hang Seng Bank and to leverage both the HSBC and Hang Seng brands to sustain the group’s growth momentum.
He said the bank has already added 1.2 million new personal banking customers in Hong Kong last year.
He mentioned that through measures such as selling businesses, the group reduced its full-time workforce by approximately 4,400 employees, involving around US$600 million. He said the group will disclose the staff reduction figures in its interim results, emphasizing that the cost-saving plan will not affect revenue.
Elhedery said the group is reallocating the saved resources, including divesting businesses that are not highly aligned with client strategy, and investing in areas where the group has competitive advantages to drive growth and returns. The group has decided to exit 12 businesses, involving approximately US$800 million in costs and about US$1 billion in revenue.
