Chillin' out till it needs to be funded
Though this could be a series in itself, I am going to confirm with you that this strategy note will try and appraise Gulliver’s task of making Turkey, Malaysia and Brazil a part of his top 18 markets; make sense of his business rationalisation and expansion in Hongkong and UK ; cover the fact that China’s statistical data and India’s regulation may continue to rankle global banks’ pitch; and build on news that Stuart is putting its $33bln US credit cards business on the chopping block.
The Strategy meet last month and later conferences at Morgan Stanley and Goldman Sachs have been used as reference material and are available at the HSBC site.
The stated targets include
Firstly, to improve efficiency to a Cost Income Ratio to 52-55% when it had sprung a nasty 61% in Q1 thru cost reductions iin the ballpark rang of $3 bln
Secondly to become the best there is in Top 18 markets where the return of equity is the best for the bank
In these stated targets that focus the bank in Gulliver’s times, apart from International Connectivity(which objective was used for Market selection) , there is the rider that they do not want to be the poor man’s banker and thus think fee income is probably unlikely to be the way forward. They want to be only among the Rich where as Iain Mackay says, they are able to find some solace and a bottomless jug of justified profit without cringing and losing the plot.
That should do for starters. Do come back and follow Stuart with us.