HSBC to Announce $1.5 Billion in Annual Savings on Feb 19
(Reuters) -HSBC is preparing to report $1.5 billion of annual cost savings from the changes implemented under its broad restructuring initiatives, the Financial Times reported on Thursday.
The bank's Hong Kong shares fell 0.2% in early trading Friday as the broader Hang Seng Index gained 1.4%.
Under CEO Georges Elhedery, who replaced Noel Quinn in September 2024, HSBC is overhauling its dealmaking and corporate advisory activities in the West, to boost returns and tighten its focus on Asia, where it earns the bulk of its profit.
The bank said last month it plans to wind down its M&A and some equities businesses in Europe and the Americas, accelerating a shift towards Asia in its biggest retrenchment from investment banking in decades.
HSBC did not immediately respond to a Reuters request for comment on the savings target reported by the FT.
Elhedery is due to report the $1.5 billion when HSBC reports its full-year results, the FT said.
HSBC has been scaling back its worldwide footprint, exiting dozens of low-returning consumer banking activities, from France to Greece to Canada in the past few years.
The bank said in October it would combine some of its commercial and investment banking businesses, and also installed a new leadership structure.
Under the changes, HSBC said it would carve up its operations into four business lines, namely UK, Hong Kong, corporate and institutional banking, and wealth banking.
(Reporting by Scott Murdoch in Sydney and Kanjyik Ghosh in Bengaluru; Editing by Alan Barona and Tom Hogue)
