We aim to complete strategic actions by the end of 2017 unless otherwise stated. The table below shows a summary of our progress as reported in our Annual Report and Accounts 2016.


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
* Further reduction of USD143.2 billion in 2016, notably in Global Banking and Markets

* Global Banking and Markets RWAs of USD300.4 billion, 37 per cent of the Group total

* RWA reduction from management actions of about USD267 billion, equivalent to about 97 per cent of the 2015-7 target on a constant currency basis
2. Optimise our global network * Reduced footprint * Completed sale of Brazil business on 1 July 2016; maintained a Brazil presence to serve large corporate clients’ international needs

* Present in 70 countries and territories at the end of 2016, down from 73 at the end of 2014
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
* Successfully achieved a non-objection to our US capital plan, which includes a dividend payment to HSBC Holdings in 2017, as part of the Comprehensive Capital Analysis and Review

* US (excluding consumer mortgage and lending run-off portfolio) adjusted profit before tax: USD0.4 billion, down 22 per cent on 2015: we are now aiming to deliver the US target post-2017

* Mexico market share gains across key Retail Banking and Wealth Management lending products

* Mexico adjusted profit before tax: US0.3 billion, up 354 per cent on 2015
4. Set up a UK ring-fenced bank * Completion by 2018 * Implementation continuing according to plan

* Appointed Chair and CEO of HSBC UK; other senior appointments in progress

* Migration of key roles underway with about 35 per cent of Birmingham positions filled
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 * USD2.2 billion cost savings realised in 2016

* Positive jaws in 2016

* Reduction of about 900 full-time equivalent positions in 2016

* Adjusted costs (excluding Brazil) down 4 per cent on 2015

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 * Global Liquidity and Cash Management revenue up 6 per cent on 2015 driven by growth in deposits and the effect of US rate rises

* Global Trade and Receivables Finance revenue down 7 per cent on 2015, reflecting decline in market conditions

* Transaction banking revenue of USD14.7 billion, up 2 per cent on 2015

* Revenue synergies of USD10.5 billion, down 5 per cent on 2015

* We are now aiming to deliver this target post-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
* Awarded Asia’s Best Investment Bank and Asia’s Best Bank for Financing by Euromoney

* Launched digital banking platform for small and medium-sized enterprises in Guangdong, allowing faster payment services with Hong Kong

*Growing business around China’s Belt and Road initiative, including energy sector deals linking China to Malaysia and Egypt

* Guangdong loans of USD4.7 billion, up 16 per cent on 2015

* ASEAN adjusted revenue: USD3.1 billion, down 2 per cent on 2015

* Asset Management assets under management distributed in Asia: USD143 billion, up 11 per cent on 2015

* Insurance manufacturing annualised new business premiums in Asia: USD2.3 billion, up 13 per cent on 2015
8. Grow business from the internationalisation of the Chinese currency, the renminbi (RMB) * USD2.0 billion to USD2.5 billion revenue * 52 per cent RQFII custodian market share (in Securities Services); ranked first by market share in all active RQFII markets

* Joint lead manager for China’s Ministry of Finance RMB3 billion bond in the UK, the first sovereign RMB bond issued outside China

* RMB internationalisation revenue, from offshore business partly or wholly denominated in RMB as well as selected products in mainland China: USD1.25 billion, down 25% on 2015

* We are now aiming to deliver this target post-2017
9. Global Standards – safeguarding against financial crime * Implementation completed by end of 2017 * Continued progress towards putting in place an effective and sustainable anti-money laundering (AML) and sanctions compliance programme, including through the creation of a new Financial Crime Risk function and improvements in technology and systems to manage financial crime risk

* By end 2017: AML and sanctions policy framework in place; major compliance IT systems introduced across the Group, including for customer due diligence, transaction monitoring and sanctions screening

* Post 2017: Policy framework and associated operational processes fully integrated in day-to-day financial crime risk management practices in an effective and sustainable way; IT systems continue to be fine-tuned

For further commentary on our strategic actions and our progress for far, please read the Annual Report and Accounts 2016.