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HSBC Ramps Up Cost-Cutting And Asia Focus Under New CEO

by THEFUTURE.TEAM

February 19, 2025

HSBC is doubling down on cost efficiency and shareholder returns as new CEO Georges Elhedery reshapes the banking giant. The London-headquartered lender plans to slash $1.8 billion in costs by the end of 2026 while pushing deeper into its most lucrative market—Asia.

Profits Beat Expectations, But Uncertainty Looms

For 2024, HSBC posted a pre-tax profit of $32.3 billion, surpassing the $31.7 billion average forecast and outpacing last year’s $30.3 billion. Despite falling interest rates, the bank maintained strong earnings, driven by its wealth and personal banking segment, which brought in $12.2 billion in profit—up 5.2% from a year earlier. Its global banking and markets division also saw a nearly 27% increase, reaching $7.1 billion.

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Investors welcomed the results, with HSBC’s Hong Kong-listed shares jumping 1.8% to their highest level since 2011, even as broader markets declined.

Aggressive Cost Cuts And Restructuring

Elhedery, who took the helm in September, is wasting no time in reshaping HSBC’s operations. The bank plans to trim $300 million in costs in 2025, followed by another $1.5 billion in cuts by the end of 2026. HSBC’s workforce already shrank by 3% last year, and the CEO is eyeing an 8% reduction in personnel expenses over the next two years.

His strategy also includes a major structural shift, aligning HSBC’s divisions along East-West lines and slashing investment banking teams in Europe and the Americas. The pivot underscores HSBC’s commitment to Asia, where it generates the bulk of its profit—despite ongoing Sino-U.S. tensions.

Shareholder Returns Stay In Focus

Alongside cost-cutting, HSBC is rewarding investors with a $2 billion share buyback, set for completion before its next earnings release. The bank also announced a $0.36 per share fourth interim dividend, bringing total 2024 payouts to $0.87 per share, including a special dividend from its Canada business sale.

Looking Ahead

Despite an uncertain interest rate environment, HSBC is targeting a mid-teens return on tangible equity for 2025-2027. Elhedery remains focused on streamlining operations, optimizing capital allocation, and boosting profitability in key Asian markets.

With bold restructuring moves and a sharp eye on efficiency, HSBC is sending a clear message: it’s in transformation mode—and investors are taking notice.

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Only 1% Of Cyprus Farms Use Precision Farming Technologies

Cyprus remains one of the European Union’s least digitised agricultural economies, with just 1% of farms using precision farming technologies in 2023, according to Eurostat.

The findings come as the EU continues to encourage the adoption of digital tools aimed at improving agricultural productivity, efficiency and sustainability.

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Internet Access Expands, But Digital Uptake Lags

Internet access has improved across the bloc, although adoption remains uneven. Eurostat found that 43% of EU farms had internet access in 2023, with northern and central European countries leading the way.

Denmark, Germany, Slovakia, Latvia, the Czech Republic and Austria all reported internet access rates above 90%.

Greater connectivity, however, has not translated into widespread digital adoption. Farm management information systems, which help farmers manage day-to-day operations, were used by only about 11% of EU farms. France was a notable exception, with around 60% of farms using the technology.

Precision Farming Concentrated In Larger Operations

Robotics adoption also remained relatively limited, with only about 7% of EU farms using robotic technologies. Overall, around 18% of farms with utilised agricultural area employed at least one precision farming technology or practice in 2023.

These included robotics for plant protection, band spraying, variable-rate application, precision crop monitoring and soil analysis. Despite representing fewer than one in five farms, these holdings accounted for around 44% of the EU’s utilised agricultural area.

The figures suggest that precision farming remains concentrated among larger agricultural businesses, where investment in digital technologies is typically easier to support.

Cyprus Lags Behind EU Leaders

Luxembourg, Finland and Estonia recorded the highest shares of utilised agricultural area managed by farms using precision farming technologies, each exceeding 75%.

At the other end of the ranking, Cyprus recorded just 1%, while Greece and Romania reported between 10% and 15%. The results indicate that Cyprus remains at an early stage of digital adoption in agriculture, even as precision farming becomes more widespread across parts of the European Union.