The banking group said today it is selling Brazil and Turkey businesses and expanding in Asia as part of a shift that, reports say, will involve shedding up to 50,000 jobs.

London/Hong Kong-listed banking group HSBC, which recently stated it is reviewing whether to keep its corporate headquarters in the UK, intends to sell its Turkey and Brazil operations, while building business in the Guangdong province of China and other parts of Asia-Pacific, it said today.

A report by Reuters said the sale of the Brazil and Turkey operations will involve a cut of up to 50,000 jobs in total and affect almost a fifth of the bank's workforce; these comprise 25,000 staff from the expected sales of the lender's Brazil and Turkey units and 22,000-25,000 from the consolidation of IT and back-office operations and branch closures. As a result, the bank will have about 208,000 full-time staff, down from 295,000 at the end of 2010, the news service said.

Today’s statement from the bank made no reference explicitly to the private bank. When asked about the matter, a spokesperson said the private banking side of HSBC was not the focus of today's announcement.

“HSBC is targeting a reduction of group risk weighted assets of circa $290 billion, including a reduction of global banking and markets RWAs to less than one-third of group RWAs,” the bank said.

“HSBC intends to sell its operations in Turkey and Brazil, but plans to maintain a presence in Brazil to serve large corporate clients with respect to their international needs. HSBC is targeting annual cost-saving initiatives of $4.5-5.0 billion by 2017, with estimated costs to achieve these savings of $4.0-4.5 billion over that period.”

The bank said it intends to speed up investments in the Asia region, with plans to develop its business in the Pearl River Delta in Guangdong province, China, and in the ASEAN region.

“HSBC will expand asset management and insurance in Asia with the aim of capturing expected opportunities from emerging wealth in the region,” it said.

“HSBC aims to deliver above GDP revenue growth from its international network through investment in foreign exchange, payments and cash management, and global trade and receivables finance. HSBC will leverage opportunities from its market leading position in renminbi internationalization,” it continued.

The bank said it will target a return on equity of greater than 10 per cent by 2017, positive adjusted jaws (revenue growth in excess of cost growth), and progressive dividends to shareholders, it said.

In April, the banking group, which marks its 150th anniversary this year, and which has been through a traumatic period due to controversy over its Swiss private bank, gave the strongest possible hint that it might shift its headquarters out of the UK.

In comments for the bank’s annual meeting, chairman Douglas Flint, referring to issues such as changing regulations on banks and the risks that the UK might leave the European Union, said the bank’s board is asking management to examine the “best place” for HSBC to have as its headquarters in the future. Its HQ is currently in London.

Separately, the bank, given its Asian roots and the rapid growth of the region, has a natural desire to build its business in this part of the world. The decision to sell Turkey and Brazil operations also suggests that these two emerging market economies – two of the largest in the world – haven’t been the strong performers that HSBC might once have hoped. Banks worldwide have also been faced with rising compliance and regulatory costs.