HSBC boosts turnaround revenue target to $2 bn

HSBC Holdings Plc, Europe's largest lender, has doubled its additional revenue target from the bank's turnaround plan to $2 billion by improving efficiency, cutting costs, and targeting emerging markets.

The London-based banking giant is on track to exceed Basel 3 capital and liquidity requirements and maintain a dividend growth policy, according to a statement filed to the Hong Kong Stock Exchange yesterday.

HSBC's chief executive Stuart Gulliver said that after one year of a three-year turnaround plan, the bank is on target to meet its capital adequacy, profitability and cost savings targets.

"We will continue to simplify HSBC, enabling us to integrate systems and operate to high global standards internationally. We will continue to run off our legacy assets, including the US consumer and mortgage lending book." Gulliver said.

The biggest external worry ''is absolutely how the eurozone plays out and whether Greece stays in...and, frankly, whether markets take things into their own hands before June 17'', the Greek election date, Gulliver stressed.

The bank aims to achieve a core tier 1 capital adequacy at the upper end of the 9.5-10.5 per cent range, ahead of the increased capital requirements. HSBC's core tier 1 ratio improved to 10.4 in Q1 2012 from 10.1 in 2011.