HSBC 2014 Annual Report Download - page 12

HSBC BANK PLC
Strategic Report: Strategic Priorities (continued)
10
five-year US DPA. The Group looks forward to
maintaining a strong, collaborative relationship with the
Monitor and his team.
Streamline processes and
procedures
We continue to refine our operational processes,
develop our functions, implement consistent business
models and strengthen IT. The Group’s aim is to achieve
a cost efficiency ratio in the mid 50’s.
Since 2011, the Group has changed how HSBC is
managed by introducing a leaner reporting structure and
establishing an operating model with global businesses
and functions. These changes - together with
improvements in software development productivity,
process optimisation, and HSBC’s property portfolio –
realised US$5.7 billion in Group wide sustainable savings,
equivalent to US$6.1 billion on an annualised (run rate)
basis. This exceeded our commitment to deliver
US$2.5–3.5 billon of sustainable savings at the outset of
the organisational effectiveness programme included in
the first phase of our strategy.
Sustainable savings arise from the reduction or
elimination of complexity, inefficiencies or unnecessary
activities, and release capital that can be reinvested in
growing our business as well as increasing returns to
shareholders.
The reorganisation of the Group into four global
businesses and eleven global functions further allows
HSBC to run globally consistent operating models. This
establishes the foundation for the next stage of
streamlining.
From 2014 to 2016, the Group will continue to
streamline processes and procedures with a target to
realise an additional US$2-3 billion of sustainable
savings. This programme will be applied to:
• improving the end-to-end optimisation of processes
and servicing channels;
• technology simplification, reducing the number of
applications used across the Group; and
• enhancing infrastructure, including optimising our
real estate utilisation and the location where certain
activities are carried out.
Streamlining is expected to be achieved through a
combination of simplifying and globalising our processes,
products, systems and operations. ‘Simplifying’ involves
identifying inefficiencies or excessive complexity and
redesigning or rationalising processes to make them
easier to understand and manage and more efficient.
‘Globalising’ involves developing standard global
processes and implementing them around the Group.
Strategic direction
Retail Banking and Wealth Management
RBWM provides retail banking and wealth management
services for personal customers in markets where we
have, or can build, the scale in our target customer
segments to do so cost effectively.
We focus on three strategic imperatives:
• building a consistent, high standard, customer needs-
driven wealth management service for retail
customers drawing on our Insurance and Asset
Management businesses;
• using our global expertise to improve customer
service and productivity, to provide a high standard of
banking solutions and service to our customers
efficiently; and
• simplifying and re-shaping the RBWM portfolio of
businesses globally, to focus our capital and resources
on key markets.
Our three growth priorities are customer growth in
target segments, deepening customer relationships
through wealth management and relationship-led
lending, and enhancing distribution capabilities,
including digital.
Implementing Global Standards, enhancing risk
management control models and simplifying processes
also remain top priorities for RBWM.
Commercial Banking
CMB aims to be the banking partner of choice for our
customers building on our rich heritage, international
capabilities and relationships to enable global
connectivity.
We have four growth priorities:
• providing consistency and efficiency for our
customers through a business model organised
around global customer segments and products;
• utilising our distinctive geographical network to
support and facilitate global trade and capital flows;
• delivering excellence in our core flow products –
specifically in Trade and Payments and Cash
Management; and
• enhancing collaboration with other global businesses.
Implementing Global Standards, enhancing risk
management controls and simplifying processes also
remain top priorities for CMB.
Global Banking and Markets
GB&M’s business model and strategy is well established
with the objective of being a ‘top 5’ bank to our priority
clients and in our chosen products and geographies.
We focus on the following growth priorities:
• connecting clients to international growth
opportunities;
• continuing to be well positioned in products that will
benefit from global trends; and
• leveraging our distinctive International expertise and
geographical network which connects developed and
faster-growing regions;
Enhancing risk management controls, implementing
Global Standards and collaborating with other global
businesses also remain top priorities for GB&M.
Global Private Banking
GPB aims to build on HSBC’s commercial banking
heritage to be the leading private bank for high net
worth business owners by: