HSBC targets $5bn in annual cost savings by 2017

HSBC on Tuesday announced a round of job cuts and branch closures with the aim of saving between $4.5bn to $5bn in annual costs by 2017.Branches in seven major markets including the UK will be closedUp to 25000 jobs set to goStrategic aim is to expand Asian footprintIn a statement issued to the Hong Kong Stock Exchange the lender said it would reduce its risk-weighted assets by about $290bn, targeting a return on equity of more than 10% within two years, down from the greater than 10% objective by 2017 outlined in its last quarterly update.HSBC set a new target for return on tangible equity of 12% by 2017.It will sell its Turkish and Brazilian operations and will close its branches in seven major markets, including the UK, where 8,000 additional jobs will be cut."We recognize that the world has changed and we need to change with it. That is why we are outlining the following ten strategic actions that will further transform our organisation," said HSBC chief executive Stuart Gulliver.HSBC also announced the criteria it will use in order to establish if it will keep its headquarters in the UK, where it has been based since 1992 when it took over Midland bank."With the aim of capturing expected opportunities from emerging wealth in the region," HSBC also said it would accelerate its investments in Asian markets, where it also plans to expand its asset management and insurance businesses.Gulliver, who has been at the helm of the bank since 2011, has already shrunk the bank's global footprint from 87 territories to 73.During that time span the bank has incurred in $11.2bn of regulatory charges.The bank's commitment to a progressive dividend policy remained unchanged as did its capital guidance.In a research report e-mailed to clients by Goldman Sachs following the lender's latest investor update - which was released early - highlighted how the "significant" by HSBC to its target for risk weighted assets makes its dividend "safer".Shares of HSBC finished the session standing 0.75% higher at HKD74.10 in Hong Kong trading.You may also enjoy:HSBC considering sale of Brazilian unit HSBC sets aside £8bn for small businessesHSBC whistleblower says his "work is not done"