Core Viewpoint - HSBC Holdings is undergoing a strategic transformation with a focus on Asia and restructuring its global operations [1] Group 1: Strategic Business Overhaul - HSBC announced a $1.5 billion cost-saving program aimed at organizational simplification by 2026, with expected total charges of nearly $1.8 billion for severance and upfront costs [2][3] - The bank plans to redeploy an additional $1.5 billion from non-strategic activities into its core strategy, winding down operations in the U.K., Europe, and the U.S. while focusing on Asia and the Middle East [3] - HSBC is divesting from several countries including Germany, South Africa, Bahrain, and France, and has completed sales in the U.S., Canada, New Zealand, Greece, Russia, Argentina, and Armenia [4] Group 2: Asia-Centric Strategy - HSBC aims to strengthen its operations in Asia, particularly targeting high-net-worth and ultra-high-net-worth clients, which constitute over half of its operations [5] - The bank is expanding its transaction banking and wealth business in Asia, focusing on core markets like Hong Kong and the U.K. [6] - HSBC is rapidly growing its wealth business in mainland China and has received approval to open 20 new branches in India, capitalizing on the growing wealth market [7][8] Group 3: Financial Performance and Outlook - HSBC's capital position remains strong, with investment-grade ratings and a return of $26.9 billion to shareholders in 2024, up from $20.8 billion in 2023 [9][10] - Revenue generation has been muted, with a negative CAGR of 2.7% over the three years ending in 2022, and expectations for weak top-line performance in the near term [12][13] - The Zacks Consensus Estimate for 2025 earnings is $6.83, indicating a projected rise of 5.1% [20][22]