We have developed a long-term strategy that reflects our purpose and enables us to capture value from our international network.
Our long-term, two-part strategy is to:
Develop our international network
To facilitate international trade and capital flows and serve our clients, with potential to help them grow from small enterprises into large multinationals.
Invest in wealth and retail businesses with local scale
To make the most of global social mobility, wealth creation and long-term demographic changes in our priority markets.
This strategy positions us to capitalise on several long-term trends:
Increasing connectivity and global flows of trade, finance and data are key drivers of GDP growth
Economic weight is shifting to Asian and Middle Eastern economies, which are expected to grow GDP threefold by 2050
The middle class is expected to grow from one-third to two-thirds of the world’s population by 2030, while the population of people over age 60 is expected to more than double by 2050
The value of our network
HSBC is one of the most international banking and financial services organisations in the world. Our network covers countries accounting for more than 90 per cent of global GDP, trade and capital flows. We have a leading presence in large and fast-growing economies. Our diversified, universal banking model offers a relatively low risk profile and volatility. We have a strong capital and funding base and offer stable shareholder returns. Read more about the value of our network.
Investor Update 2015
Since 2011, we have materially transformed our business in line with our strategy. At our Investor Update in June 2015, we outlined plans to further reshape our business. We will redeploy resources to capture expected future growth opportunities and adapt to structural changes in the operating environment.
We have set out a series of actions to be completed by 2017. Read about our progress towards completing these actions as reported in our Annual Report and Accounts 2016.
We aim to achieve a return on equity of more than 10 per cent in the medium term. We aim to grow business revenues faster than operating expenses on an adjusted basis. In the current uncertain environment we plan to sustain the dividend at its current level for the foreseeable future. Growing our dividend in the future depends on the overall profitability of the Group, delivering further release of less efficiently deployed capital and meeting regulatory capital requirements in a timely manner. Actions to address these points are core elements of the Investor Update provided in June 2015.
Delivering these priorities will create value for our customers and shareholders and contribute to the long-term sustainability of HSBC. In the process, we shall maintain a robust, resilient and environmentally sustainable business in which our customers can have confidence, our employees can take pride and our communities can trust.