HSBC is preparing to report $1.5 billion of annual cost savings as part of its ongoing restructuring efforts, according to a report by the Financial Times. The bank’s CEO, Georges Elhedery, aims to boost returns and tighten its focus on Asia, where it earns most of its profit.
Under Elhedery’s leadership, HSBC is overhauling its dealmaking and corporate advisory activities in the West and accelerating a shift towards Asia. This includes plans to wind down some businesses in Europe and the Americas, marking the bank’s biggest retrenchment from investment banking in decades.
HSBC has been scaling back its global footprint, exiting low-returning consumer banking activities in several countries. The bank will combine some of its commercial and investment banking businesses and carve up its operations into four business lines: UK, Hong Kong, corporate and institutional banking, and wealth banking.
The cost savings target is expected to be reported when HSBC announces its full-year results. The bank declined to comment on the specifics of the savings target but aims to enhance its profitability through these changes.
Source: https://finance.yahoo.com/news/hsbc-unveil-1-5-billion-003123899.html