HSBC banking on £3bn takeovers

BANKING giant HSBC said it has earmarked up to £3bn to spend on future acquisitions as it laid out an ambitious growth plan for the next five years.

In one of the bank's first presentation days for analysts and investors, chairman Sir John Bond said the world's second largest bank was not in the market for a transforming 'mega-deal'. But it is keeping its eye out for smaller banking takeovers in the fastest-growing economies.

Sir John forecast that over the next 25 years 50% of the increase in world demand for banking services would come from China, India, Mexico and Brazil.

HSBC has already invested £387m in China, taking an 8% stake in Bank of Shanghai and 10% of Ping An Insurance. It also spent more than £1bn buying GF Bital bank in Mexico.

Sir John reaffirmed HSBC's commitment to developing in Turkey, despite the horrific bomb attack last week at its Istanbul HQ, killing three staff and injuring 47 others.

But Stuart Gulliver, the co-head of HSBC's investment bank said there would be some job losses. He said about 450 out of 1,450 equities jobs worldwide would go.