HSBC expects revamp to cost $1.8 billion over two years

SBC Holdings Plc will incur $1.8 billion in charges over the next two years as it embarks on a global restructuring program that has seen the lender shutter some of its businesses and slash management ranks.

- Bloomberg

Europe's largest bank, which has been deepening its push into Asia and some Middle East markets, said it hopes the restructuring will allow it to whittle away $3 billion in expenses in the coming years. About half of that would then be reinvested into priority growth areas, according to its full-year earnings presentation Wednesday.

"Since becoming CEO, I have focused on simplifying how we operate," chief executive officer (CEO) Georges Elhedery said in a statement in which he also detailed a $2 billion share buyback. "We are creating a simple, more agile, focused bank built on our core strengths."

The lender's shares, which have surged 15.4% so far this year, were up 0.2% in early afternoon Hong Kong trading. Analysts at Jefferies Financial Group Inc. said "some investors would have hoped for a better than $2 billion share buyback."