Subsequent Event

12 Months Ended

Dec. 31, 2019

On February 17, 2020, our Board of Directors approved a strategic plan to restructure our operations ("Restructuring Plan") in alignment with HSBC’s global strategy to refocus our wholesale operations to better serve our international corporate clients and restructure our retail operations to better meet the needs of globally mobile and affluent clients. We will also streamline our functional and operations support model by removing duplication and reduce the size of our balance sheet to better align with the scope and scale of the U.S. opportunity.

We expect to incur pre-tax charges in connection with this Restructuring Plan over the two year period of 2020-2021 of approximately $350-$400 million ($265-$305 million after-tax). Approximately $200-$250 million represents lease impairment charges and the remainder is comprised of severance and other costs. The portion of the pre-tax charges that will result in future cash expenditures cannot be determined at this time.

We also anticipate investments of approximately $100 million in modernization, digital capabilities and expanded product solutions. There can be no assurance, however, as to the precise timing or amounts of these expenditures. We anticipate that it will require approximately 24 months to complete the Restructuring Plan.