Banking giant HSBC (HSBA.L) is to go on a massive cost-cutting drive aimed at delivering savings of up to $3 billion (£1.8 billion).

The cost savings - to be acheived by 2013 - are to be used for further 'self-funded investment' in the bank.

Stuart Gulliver, group chief executive at HSBC, said the cost-savings drive will affect a number of its divisions.

He said the move was not intended to shrink the business, instead it would be used to free up cash for reinvestment in the business.
 
Gulliver said the bank is set to concentrate on commercial and wholesale banking and wealth management in 18 of 'the most relevant economies'.

He said retail banking will be limited to countries where it can achieve proftiable scale.

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