HSBC to unveil $1.5bn in savings alongside financial results
Georges Elhedery’s major shake-up of HSBC will shave $1.5bn off the bank’s total costs, according to reports.
The Financial Times and Bloomberg have both reported that the cost savings will be revealed alongside the lender’s financial results, which are due to be published next Wednesday.
The FT, citing two people familiar with the matter, reported that the savings, which come after one-off costs, will largely result from HSBC’s decision to withdraw from non-core markets.
The bank confirmed last month that it will wind down parts of its investment banking operations across the UK, Europe and North America as part of sweeping global restructuring plans.
The London-based lender will reorganise into four new divisions and split its businesses into Eastern and Western geographical camps.
Elhedery, who replaced Noel Quinn as CEO in September, is attempting to streamline the bank’s sprawling operations and rein in costs.
His plans to streamline HSBC has already seen the firm lay off scores of senior bankers, with expectations that over 40 per cent of HSBC’s top 175 managers will be axed.
The bank has already seen a number of senior executives leave, including global private banking and wealth chief Annabel Spring, group sustainability officer Celine Herweijer, Middle East head Stephen Moss, and European bosses Colin Bell and Nuno Matos.
Banks are looking to slash costs as interest rate cuts begin to squeeze profit margins following a period of record-breaking earnings.
HSBC declined to comment.