HSBC investors have backed the bank’s plan to cut investment banking ties, with estimated annual savings ranging between $1.5 billion and $3.8 billion. The move comes as US President Donald Trump’s deregulatory agenda fuels hopes for a boom in capital markets activity.
The bank has been shrinking its global footprint over the past decade, focusing on its strongest franchises in core Asian markets. Investors say geopolitics are making it difficult for businesses to operate globally, and HSBC is shifting group capital into Asian economies with healthy regional trading prospects.
HSBC’s CEO George Elhedery will unveil further details of his vision for the bank when it reports full-year results on February 21. Unconfirmed reports put cost savings at between $1.2 billion and $3 billion, partly achieved through management role cuts and units already scrapped.
Investors believe bosses are meticulously analyzing each business to deliver a sustainable return on tangible equity (ROTE) of around 16%. The bank’s London-listed shares have risen by 11.5% year-to-date, after rising by a fifth in 2024.
Source: https://www.reuters.com/business/finance/hsbc-investors-back-ceos-investment-banking-retrenchment-2025-02-16