HSBC planning huge cost-cutting

HSBC employs more than 287,000 people in 87 countries.

HSBC, Europe’s biggest bank, wants to save up to $3.5bn (£2bn; 2.4bn euros) by cutting the scale of its wealth management and retail divisions.

The bank is also streamlining IT operations and the operational structure, though no figures were given for the number of job cuts.

HSBC disclosed the plans on Wednesday ahead of a meeting with key investors.

The bank’s problems were revealed on Monday after a big rise in costs held back profits.

The proportion of revenue spent on operational costs was 61% in the first quarter, and HSBC said it wanted to reduce this to 48%-52% by 2013.

HSBC said in a statement that it would now focus its wealth management business on 18 key economies, and limit retail banking to markets where it can achieve profitable scale.

The bank currently operates in 87 markets and employs more than 287,000 people.

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