The bank has made substantial cutbacks in Asia, including 3,000 job losses in Hong Kong and the sale of its Japanese, South Korean and Thai retail businesses, and they are taking affect. The overhaul helped profit before tax increase 15 per cent in Hong Kong and the rest of Asia-Pacific during 2011.

Altogether the London and Hong Kong-listed bank has disposed of or exited 28 non-core businesses since the beginning of 2011, making HSBC simpler and easier to manage, it said, and potentially releasing $55 billion in risk-weighted assets.

The bank reaffirmed its financial targets to achieve return on common equity of 12-15 per cent, a cost efficiency ratio of 48-52 per cent, and a common equity tier 1 ratio of 9.5-10.5 per cent.

As recently reported, the banking giant has agreed to sell businesses in Colombia, Peru, Uruguay and Paraguay, entering a deal with the Colombian banking entity controlled by the Gilinski Group, Banco GNB Sudameris.  HSBC has also said it may sell its wealth and retail banking operations in Korea to the Korea Development Bank, part of the KDB Financial Group. The bank continues to offload certain businesses - include wealth management - to consolidate its global operations.

Integration

Integration of HSBC’s four global businesses delivered incremental revenue of $500 million in 2011, with a further $1.5 billion anticipated in the short to medium term

“Since we set out our strategy to make HSBC the leading international bank, we have moved at pace,” said Stuart Gulliver, group chief executive.

“We are reaffirming our targets, and, while market conditions and changing regulatory costs will continue to influence our performance, we have clear and robust programmes in hand to manage costs and capture opportunities for growth.”

The bank will continue to run off its legacy assets, including the US consumer and mortgage lending book. HSBC is currently restructuring its US operations, repositioning its global private banking offering, and trying to integrate its four global businesses more closely.

“We have increased by an additional $1 billion our assessment of the potential extra revenue achievable from business integration in the short to medium term. We will commit capital to organic growth opportunities in priority growth markets,” said Gulliver.