On February 13, HSBC is poised to announce annual cost savings amounting to $1.5 billion from the restructuring initiatives it has undertaken, as reported by the Financial Times.
Despite the broader Hang Seng Index rising by 2.5% on Friday, HSBC’s Hong Kong shares dipped by 0.4%.
With Georges Elhedery at the helm as CEO since September 2024, succeeding Noel Quinn, HSBC is revamping its dealmaking and corporate advisory activities in the West to enhance returns and concentrate more on Asia, its primary profit center.
Recently, the bank unveiled plans to phase out its M&A and some equities businesses in Europe and the Americas, accelerating its focus on Asia in one of its most significant pullbacks from investment banking in decades.
HSBC has refrained from commenting on the cost-saving target disclosed by the Financial Times. Elhedery is expected to announce the $1.5 billion in cost savings when HSBC releases its full-year results.
In a strategic move, HSBC has been streamlining its global presence by withdrawing from numerous consumer banking activities with low returns, spanning from France to Greece to Canada in recent years.
In an announcement made in October, the bank outlined its intent to restructure some of its commercial and investment banking operations and introduced a new leadership framework.
As part of these changes, HSBC disclosed its intention to segment its operations into four business lines: the UK, Hong Kong, corporate and institutional banking, and wealth banking.