The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Retail banking: HSBC scales back retail banking

Operations in 39 countries under review; Bank must be wary about abandoning its command-and-control culture

HSBC chief executive Stuart Gulliver

"The reasons for holding our stock in a crisis become less relevant in recovery and, in our view, we now risk losing ground to more agile competitors"

Stuart Gulliver, HSBC

Last month HSBC outlined ambitious plans to boost its lacklustre return on equity by sharply cutting costs, exiting some non-core retail banking businesses and allocating capital in a much more disciplined way than in the past to remaining businesses. The bank’s new senior management team, led by chief executive Stuart Gulliver, invited analysts and investors to listen to a whole day of presentations from the executives running HSBC’s most important businesses and geographies on how they will achieve $2.5 billion to $3.5 billion of annual cost savings, reduce the cost-income ratio from 55% to between 48% and 52%, and boost returns on equity from the 9.5% achieved in 2010 up to between 12% and 15%.

HSBC had a good credit crisis, thanks to the abundant funding husbanded through a conservative advances-to-deposits ratio of about 80% and similarly conservative capital ratios.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree