HSBC is undertaking a significant reshaping of its business portfolio, including accelerating investments in Asia. 

The firm will expand asset management and insurance in Asia with the aim of capturing expected opportunities from emerging wealth in the region. HSBC plans to develop its business in both the Pearl River Delta in Guangdong province, China, and in the Asean region.

“HSBC has an unrivalled global position: access to high growth markets; a diversified universal banking model with strong funding and a low risk profile; and strong internal capital generation with industry leading dividends," said Stuart Gulliver, group chief executive.

“We recognise that the world has changed and we need to change with it."

The firm is redeploying resources by targeting a reduction of group risk weighted assets (RWAs) of around $90bn, including a reduction of global banking and markets RWAs to less than one-third of group RWAs. 

HSBC will sell its operations in Turkey and Brazil, but plans to maintain a presence in Brazil to serve large corporate clients with respect to their international needs. HSBC is targeting annual cost-saving initiatives of $4.5bn to $5bn by 2017, with estimated costs to achieve these savings of $4bn to $4.5bn over that period.

HSBC also aims to deliver above GDP revenue growth from its international network through investment in foreign exchange, payments and cash management, and global trade and receivables finance. HSBC will leverage opportunities from its position in renminbi internationalisation.