HONG KONG -- HSBC announced its strategy execution plan on Wednesday stating that the bank has launched a program to target $2.5 billion to 3.5 billion of cost saves to reach cost efficiency ratio target of 48 percent to 52 percent by 2013.

HSBC held a series of presentations on group strategy for investors and analysts at its London headquarters Wednesday.

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In a filing to the Hong Kong Exchanges, Stuart Gulliver, chief executive of the company, said the program will consist of implementing consistent business models in Retail Banking and Wealth Management and Commercial Banking; re-engineering and de- layering global business functions; re-engineering business processes; and streamlining IT.

The strategy is to concentrate on commercial and wholesale banking in globally connected markets, he said. HSBC will focus on wealth management in 18 of the most relevant economies and limit retail banking to those markets where we can achieve profitable scale.

"In the United States we are conducting a strategic review of our cards business and parts of the branch network to better align it with the strategy and reallocation of capital," he said.

In addition, the strategy targets return on common equity of 12 percent to 15 percent over the cycle supported by pre-tax return on risk weighted assets of 1.8 percent to 2.6 percent.

HSBC aims to grow advances-to-deposits ratio from 79 percent within guideline of maximum 90 percent. The bank also targets dividend payout ratio of 40 percent to 60 percent.