HSBC is the world’s leading international bank, with unparalleled access to high-growth markets and a strong balance sheet. Our long-term strategy builds on these advantages and positions us to capitalise on global trends affecting the financial services industry.
We have around 3,800 offices in both established and emerging markets. Our four global businesses serve more than 38 million customers worldwide, ranging from individuals and families to major multinational corporations.
Throughout our history we have been where the growth is, connecting customers to opportunities. We enable businesses to thrive and economies to prosper, helping people fulfil their hopes and realise their ambitions. We see this as our role and purpose.
Our international network generates more than half of the HSBC Group’s client revenue and covers markets that account for about 90 per cent of global GDP, trade and capital flows.
Our access to high-growth, developing markets in Asia, the Middle East and Latin America gives us a platform for long-term growth. And our balance sheet strength continues to provide an excellent foundation for a sustained dividend.
Today, after a period of significant transformation for the bank, we are refocusing on growth. We aim to increase customer numbers, take market share, and grow revenue and profits on a consistent basis. We will do this while taking action to improve our competitiveness in the future, including by investing in technology.
In June 2018 we set out a series of strategic priorities to deliver revenue and profit growth, improve returns to shareholders, and enhance the service we provide to customers. We aim to:
- Accelerate growth from our Asian businesses, including in Hong Kong, the Pearl River Delta, ASEAN, and Wealth in Asia, including Insurance and Asset Management; and be the leading bank to support the transition to a low-carbon economy and the China-led Belt and Road Initiative
- Complete the establishment of our UK ring-fenced bank, increase mortgage market share, grow our commercial customer base, and improve customer service
- Gain market share and deliver growth from our international network
- Turn around our US business
- Improve capital efficiency and redeploy capital into higher-return businesses
- Create the capacity for increasing investments in growth and technology through efficiency gains
- Improve our customer service by investing further in technology and our digital capabilities; increasing our reach; and delivering industry-leading financial crime standards
- Simplify the organisation and invest in future skills
Alongside these eight strategic priorities, we also set out updated financial targets. These include:
- Delivering a return on tangible equity (RoTE) of greater than 11 per cent by 2020
- Achieving positive adjusted jaws on an annual basis; this means growing adjusted revenue faster than adjusted costs
- Sustaining the dividend at current levels and undertaking, as appropriate, share buybacks to neutralise any share issuance as a result of scrip dividends, subject to regulatory approval
The value of our network
Our network of businesses covers the world’s largest and fastest growing trade corridors and economic zones.
To find out more detail about our strategic priorities and financial targets, read the HSBC Strategy Update that we announced in June 2018.
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