Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 38

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 38
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 seamless services. Through the reduction of inefficiencies and streamlining processes we will help provide quicker responses and better journeys for our customers. The investments we are making in Technology will contribute to a simpler, safer organisation with operational resilience and stability at its core, helping to create lasting value for both our customers and stakeholders. By harnessing AI capabilities, HSBC aims to improve customer service through AI supported mobile apps and strengthened contact centre capabilities, as well as improving process efficiency in onboarding, know-your-customer, and credit applications. We are supporting our engineers through the scaled roll out of coding assistants to improve technology productivity, and we are using AI to help protect the bank and our customers more effectively against fraud and cyber crime. We are committed to the responsible use of AI, ensuring that our initiatives align with industry and regulatory standards and best practices. Our governance frameworks aim to enable robust prioritisation of use cases whilst mitigating potential risk associated with AI deployment.

| HSBC Holdings plcAnnual Report on Form 20-F | 17 |

Our ambitions Mid-teens RoTE extended During 2024, we announced our intention to target a mid-teens RoTE 1 , excluding the impact of notable items, for 2025. Alongside our 2024 annual results, we have extended this target to each of 2025, 2026 and 2027. We will consider our cost and investment plans within this framework. Simplification With our 2024 results, we have announced that we aim to generate approximately $0.3bn of cost reductions in 2025, with a commitment to an annualised reduction of $1.5bn in our cost base expected by the end of 2026. These savings are primarily people- related organisational design reductions, have negligible impact on revenues and are aligned to the strategic reorganisation of the Group. We have simplified our businesses in our domestic markets, Hong Kong and the UK. Our scale retail and commercial banking platforms here will benefit from shorter lines of decision making, empowering our colleagues to get things done. We plan to intensify successful partnerships between our domestic markets and our international franchises, CIB and IWPB, for those clients with more complex and networked needs. Ensuring we continue to provide the services and products our global scale enables us to create is key to our growth. We will continue to service Wealth clients; and internationally active commercial and corporate clients in Hong Kong and the UK on an integrated basis. Growth We are focused on growth opportunities within our strategy that play to our