Re: Kazulias Nyheter
Posted: Wed Aug 14, 2019 11:43 am
HKBC, the Hutorian-Kazulian Banking Corporation, has unveiled its strategy for upwards corporate development in the coming
decades. The growth plan marks the end of the large-scale reorganisation the geographically diversified banking giant has been
undergoing since 4600, something that resulted in a reduction in its global footprint through the disposal of many loss-making
and non-core units worldwide. While the reorganisation plan was essential given the changes in global regulatory requirements
since the economic downturn, it led to a steady decline in revenues for HKBC over the years. The bank is now aiming to grow its
top line over the coming years by focusing its efforts on high-growth areas while keeping costs low and reallocating capital more
efficiently. According to the bank's Chairman, Gustaf Backström, an estimate of 55 krona has been placed for HKBC's shares.
According to Backström, the company intends on continuing to push its expansion into the Keris/Macon, Majatran and Dovanian
markets: Dovani is expected to remain HKBC's key growth area for the foreseeable future, with the bank expected to invest
considerably to garner more business in the economically growing region. HKBC intends to leverage its strong presence in Lourenne
for future growth there, besides continuing to channel investments in the Majatran and Keris/Maconian region. Additionally, HSBC
is also looking to ramp up its wealth management offerings in the aforementioned regions to be able to make the most of the rapid
increase in the number of high net-worth individuals. It has been stated that the efforts will boost HKBC's Dovanian Loan
Portfolio over coming years, drive growth in Dovanian, Keris/Maconian and Majatran deposits and improve profit margins. HKBC is
expected to focus on growing mortgage operations in Kazulia and Hutori and will also drive growth in small business lending by
easing application process. This should help the bank reverse the poor loan growth it has witnessed in the country over recent
years. HKBC has largely exited the retail banking space in Seleya and Artania following its spin-off FirstBaltusian Bank of
Commerce's success, and continues to prioritise the return of corporation's active banking in the regions. With Artania and
Seleya losing their importance in global trade finance to other regions, it is expected that whilst the bank may want to re-enter
the market, it is unlikely that it will move out of the areas of retail banking.
According to statements from the bank's capital investment firm, HKBC aims to release excess capital from its Keris/Macon and
Majatran operations and to transfer this to high-growth areas like Dovanian Retail and Wealth Management operations, and
Transaction Banking. This will allow the bank to report a steady improvement in return on equity, despite the projected increase
in total equity from strong performance. As it has become an extremely important sentiment for the banking corporation, core
infrastructure as mentioned in the government's financial development programme for the City of Skalm, is the backbone of
economic/financial development. It has been stated that the bank would introduce some 10 billion krona in capital to invest into
core infrastructure to bring down operating costs. The Hutorian-Kazulian Banking Corporation remains Kazulia's largest financial
institution after the central banking corporation, Kazulsk Bank. It is expected the bank's development alongside the push for
Skalm towards becoming a global financial centre will boost the bank's international, regional and local operations and improve
its earnings.