Actions to resize and simplify the Group


Action Targeted outcome Progress
1. Reduce risk-weighted assets (RWAs) across the Group by about USD290 billion * USD290 billion reduction in Group RWAs

* Global Banking and Markets to represent less than one third of Group RWAs and to return to Group target profitability
* RWA gross reduction from management actions of USD296 billion, more than 100 per cent of our FX-adjusted target
2. Optimise our global network * Reduced footprint * Realised three further country exits in the first half of 2017; present in 67 countries at end of June 2017

* Turkey legal entity transfer complete in June 2017, 1H17 costs down 27 per cent and profit before tax up more than 400 per cent on 1H16

* Progressing previously announced transactions and closures
3. Rebuild profitability in the North American Free Trade Agreement (NAFTA) region * Profit before tax in the US of about USD2 billion a year

* Profit before tax in Mexico of about USD0.6 billion a year
* Material improvement in adjusted profit before tax in all three countries: Canada up 52 per cent, US excluding legacy portfolio up 122 per cent, Mexico up 61 per cent

* Completed sales of US CML (consumer mortgage and lending) legacy portfolio totalling USD5.5 billion; remaining CML portfolio reduced to USD1.6 billion with plans to complete the sale / wind-down of the portfolio by the end of 2017

* Mexico adjusted profit before tax gains over prior year in RBWM (up 37 per cent), CMB (up 29 per cent) and GBM (up 150 per cent): continued market share gain in strategic product areas

* We are now aiming to deliver the US target post-2017
4. Set up a UK ring-fenced bank * Completion by 2018 * Received a restricted banking licence from the UK FCA and the PRA to set up our UK ring-fenced bank

* On track to have a fully functioning team in place for the opening of our new UK headquarters in the first quarter of 2018
5. Deliver USD4.5 billion to USD5.0 billion in cost savings * Annualised costs at December 2017 to be the same as 2014 operating expenses * Achieved annualised run-rate savings of USD4.7 billion

* Continued to migrate activities to global service centres with 26 per cent of staff now in lower-cost locations

* Now one of the biggest financial services users of biometrics globally; continue to introduce voice recognition and fingerprint technology across our network

Actions to redeploy capital and invest


Action Targeted outcome Progress
6. Deliver revenue growth above GDP growth from our international network * Revenue growth of international network above GDP growth * Transaction banking adjusted revenue up 7 per cent in 1H17 on the prior year, with Global Liquidity and Cash Management adjusted revenue increasing by 11 per cent, driven by growth in deposits and the impact of US rate rises

* Synergies revenue grew 17 per cent in 1H17 compared with 1H16

* Named ‘World’s Best Bank’ by Euromoney Awards for Excellence 2017


7. Capture growth opportunities in Asia, including in China’s Pearl River Delta, in the Association of Southeast Asian Nations (ASEAN), and in our Asset Management and Insurance businesses * Market share gains

* About 10 per cent growth per year in assets under management in Asia
* Since the launch of our credit cards in China at the end of last year, we have reached nearly 250,000 cards in circulation

* Insurance annualised new business premiums and Asset Management assets under management up 14 per cent and 15 per cent respectively compared with 1H16

* Awarded ‘Asia’s Best Bank’ and ‘Hong Kong’s Best Bank’ by Euromoney Awards for Excellence 2017

8. Grow business from the internationalisation of the Chinese currency, the renminbi (RMB) * USD2.0 billion to USD2.5 billion revenue * Ranked number 1 among all banks (53.7 per cent market share) in terms of market share in RMB Qualified Foreign Institutional Investor (RQFII) custodian business as of June 2017

* Ranked number 1 in offshore RMB bond underwriting in 1H17 with 28.5 per cent market share

* Ranked number 1 for the sixth consecutive year in the Asiamoney Offshore RMB Poll 2017, also winning across all 10 sub-categories

* Largest fund house in terms of assets under management in the Mutual Recognition of Fund scheme (southbound), with 43.1 per cent share as of March 2017 (source: WIND Information Co.)

* We are now aiming to deliver this target post-2017
9. Global Standards – safeguarding against financial crime * By end 2017: Introduction of major compliance IT systems; anti-money laundering (AML) and sanctions policy framework in place; assessment against the capabilities of our financial crime risk framework to enable the capabilities to be fully integrated in our day-to-day operations

* We remain on track to complete the introduction of the major compliance IT systems, to have our AML and sanctions policy framework in place, and to complete all actions committed to as part of the Global Standards programme in 2013 by the end of 2017

* Post 2017: Policy framework and associated operational processes fully integrated into day-to-day financial crime risk management practices in an effective and sustainable way. Target end state agreed with the UK Financial Conduct Authority to be achieved. Major compliance IT systems continue to be fine-tuned, and recommendations from the Monitor continue to be implemented