Next week, Europe's largest bank will present its annual figures. However, the results will probably be of secondary importance. Much more exciting is how CEO Georges Elhedery will implement the announced radical reorganization and how high the bar will be set for savings.
Georges Elhedery had already set out the direction of the reorganization when he took over as CEO of the Asia-focused British lender last October. Duplications are to be eliminated and the cumbersome bureaucracy within the organization reduced.
As part of the changes, HSBC is now divided into four business divisions: UK, Hong Kong, corporate and institutional banking and wealth banking.
Cost Savings
When presenting its figures on Wednesday, Elhedery will announce annual cost reductions of $1.5 billion after one-off costs, according to a «Financial Times» report citing insiders.
According to «Bloomberg», another round of redundancies is likely to be announced next week. This will affect investment banking in particular and will begin in Asia at this stage. It is not clear how many employees will be affected by the measures.
New Round of Redundancies
The redundancies are to be staggered over several weeks and months. The decisions will be made based on performance, as well as to reduce duplication and simplify processes, the report said.
«As announced in October 2024, HSBC is focused on building its leadership position and market share in areas where it has a clear competitive advantage and where it sees the greatest opportunities for growth,» a spokesperson for the bank said.
