HSBC to invest billions in tech and 'simplify' business to boost growth

HSBC will "simplify" the business, invest billions in tech and turn around its US division as part of new chief executive John Flint's growth plans.

The bank released a strategy update meant to get it "back into growth mode" on Monday, setting fresh financial targets that include keeping dividends at current levels and launching share buybacks.

Mr Flint, who was appointed earlier this year, said: "After a period of restructuring, it is now time for HSBC to get back into growth mode.

"The existing strategy is working and provides a strong platform for future profitable growth. In the next phase of our strategy we will accelerate growth in areas of strength, in particular in Asia and from our international network."

An eight-point plan shows the lender will look to boost growth across its Asia business, complete the ring-fencing of its UK bank, boost its share of the mortgage market and improve customer service.

It is also aiming to complete the turnaround of its US business and gain market share across its international network.

Mr Flint - who took the chief executive role on February - said HSBC will also be investing 15-17 billion US dollars (£11.2 billion - £12.7 billion) "primarily in growth and technology".

Those plans are meant to help HSBC deliver a return on tangible equity (RoTE) - an industry measure of net profit - of more than 11% by the end 2020.

In the meantime, HSBC said it expects to report mid-single digit growth in revenue between 2018 and 2020 and is likely to see low to mid-single digit growth in operating expenses.

HSBC shares were down nearly 1% in morning trading.

HSBC is Europe's biggest bank, but earns most of its profits from Asia.

Last year, it completed a corporate overhaul to raise profitability by focusing more on high-growth Asian emerging markets while shedding businesses and workers in other countries.