HSBC expects to incur $1.8 billion in expenses by the end of next year related to an overhaul initiated by its new CEO to cut long-term costs and boost profits while navigating diverging interest rate policies and geopolitical turmoil.

Hong Kong’s biggest bank announced US$2 billion in a share buy-back programme and 87 US cents per share in dividend.

The London-based bank said it plans a new share buyback and cost cuts as its chief executive concentrates on streamlining the lender.

HSBC Holdings Plc will incur US$1.8bil in costs over the next two years as it embarks on a global restructuring programme that has seen the lender shutter some of its businesses and slash management ranks.

HSBC on Wednesday said it aims to save $1.8 billion in costs by the end of next year, as its new CEO revamps the bank to boost profit while navigating mixed interest rate policies and profound geopolitical changes.