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.

The London-based bank’s chief executive is concentrating on streamlining the lender’s businesses and reducing costs.

The London-based bank reported profit before tax for 2024 of $32.3 billion. That compared with $30.3 billion a year earlier and the $31.7 billion average of analyst estimates compiled by the bank. The Asia-focused bank also announced a new $2 billion share buyback which it plans to complete before next earnings in May.