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HSBC plans to invest between US$15bn-US$17bn in technology as it gets back into "growth mode”

In a strategy update, the FTSE 100-listed lender’s chief executive John Flint said: “The existing strategy is working and provides a strong platform for future profitable growth”
HSBC building
The HSBC boss added: “In the next phase of our strategy we will accelerate growth in areas of strength, in particular in Asia and from our international network."

HSBC PLC (LON:HSBA) plans to invest between US$15bn and US$17bn in technology as it gets back into "growth mode" after a period of restructuring.

In a strategy update, the FTSE 100-listed lender’s chief executive John Flint said: “The existing strategy is working and provides a strong platform for future profitable growth.”

READ: HSBC weak after surprise drop in first-quarter profit due to higher operating expenses

He added: “In the next phase of our strategy we will accelerate growth in areas of strength, in particular in Asia and from our international network. We will leverage our size and strength to embrace new technologies, investing US$15-17bn primarily in growth and technology, subject to achieving positive adjusted jaws each financial year."

The global bank said it is aiming to deliver mid-single digit growth in revenue, low to mid-single digit growth in operating expenses, and around 1-2% annual growth in risk-weighted assets (RWAs).

It expects this to result in an improvement in reported revenues as a percentage of reported average RWAs from around 5.9% in 2017 to 7% by 2020.

HSBC is targeting a return on tangible equity (RoTE) of greater than 11% by 2020.

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