LONDON (dpa-AFX) - HSBC Holdings plc (HBC, HSBA.L) said it has made $2 billion in cost savings on an annualised basis to date, and expected to hit the top end of $2.5 billion - $3.5 billion savings target by the end of 2013. Further, the company confirmed its targets to achieve return on common equity of 12% - 15%, cost efficiency ratio of 48% - 52%, and a common equity tier 1 ratio of 9.5% - 10.5%.
The company stated, 'We will continue to simplify HSBC, enabling us to integrate systems and operate to high global standards internationally. We will continue to run off our legacy assets, including the US consumer and mortgage lending book.' The U.K.-based bank noted that it is restructuring its US operations, repositioning its Global Private Banking offering, and adapting to the challenges posed to Global Banking & Markets products by the changing regulatory environment.
In addition, the 28 disposal transactions announced by the company since the start of 2011 could potentially release $55 billion in risk-weighted assets, and nearly 15,000 staff have been transferred outside the group.
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