Anthony Cheung’s Post

HSBC is making major changes! 🚨 Starting January 1, 2025, the bank will streamline operations into four core divisions, aiming to enhance efficiency, improve customer service, and better manage geopolitical challenges. This overhaul includes a new east-west geographic setup and will reduce duplication across its global footprint. Here are the four new divisions: Hong Kong: Personal and Commercial Banking in HSBC's home market. UK: Personal and Commercial Banking, including First Direct and M&S Bank. Corporate & Institutional Banking: Merging global commercial banking (outside of the UK and Hong Kong) with Global Banking & Markets. International Wealth & Premier Banking: Focused on wealth growth, particularly in Asia and the Middle East. HSBC’s CEO, Georges Elhedery, highlighted that this restructuring is designed to simplify decision-making and unlock the bank’s full potential in key markets. A new, smaller Group Operating Committee will lead the charge in driving these changes. Exciting times ahead for HSBC as they focus on delivering growth, innovation, and superior customer service! #HSBC #BankingTransformation #CorporateStrategy #Efficiency #Growth

🔄 Major restructuring announced at HSBC today as CEO Georges Elhedery unveils plans to reorganize the bank into four key divisions, splitting operations between eastern and western markets. The creation of a unified corporate and institutional banking division under Michael Roberts signals a significant shift in how the banking giant will serve its global clients. This comes alongside the historic appointment of Pam Kaur as the bank's first female #CFO. What caught The Global Treasurer's attention is how this restructuring appears to navigate the growing complexities of East-West relations while maintaining HSBC's unique position as a global banking bridge. The Financial Times reports a targeted $300M in cost savings, but the real story here is about adapting to an increasingly fragmented global financial landscape. Key changes: ➡ Four new divisions: Hong Kong, UK, Corporate & Institutional Banking, and International Wealth ➡New geographic split between eastern and western markets ➡Executive committee reduced from 18 to 12 members ➡Strategic Clients Group created under Greg Guyett Implementation starts January 1, 2024. This could set a precedent for how global banks balance regional autonomy with integrated international services. #Banking #GlobalFinance #Leadership #FinancialServices #HSBC

HSBC is considering combining its commercial banking and global banking & markets divisions into a single, larger business unit. The new combined division would become HSBC's largest revenue generator, contributing around $40 billion per year. The combination would bring together over 90,000 employees across the two divisions, potentially allowing for some elimination of duplicative back-office roles. The proposal has been considered before but was previously opposed by former CEO Noel Quinn. However, with the arrival of new CEO Georges Elhedery, the idea is being reconsidered as part of efforts to simplify HSBC's structure and reduce expenses. Elhedery has emphasized cost discipline since taking over as CEO, and the bank has already begun slowing hiring and reducing travel and entertainment spending. Combining the commercial and investment banking divisions would mirror a similar move by JPMorganChase Chase earlier this year, while Citi has recently broken up its institutional clients group into smaller units. The potential restructuring is part of Elhedery's efforts to put his own stamp on HSBC and continue the bank's strategic pivot towards its core Asian markets. #HSBC #Growth #CostManagement #InvestmentBanking #CommercialBanking #Efficiency I Bloomberg News I Harry Wilson I Ambereen Choudhury I Denise Wee I Laura Noonan I Donal Griffin

HSBC is examining plans that could cut costs by at least $3 billion as it continues to restructure its worldwide operations under new Chief Executive Officer Georges Elhedery. #banking https://lnkd.in/eD-nh3Gk

HSBC Mulls Merging Commercial, Investment Bank to Cut Costs "HSBC executives have considered a tie-up of the commercial and global banking divisions in the past, but the proposal was previously met with heavy internal resistance and former HSBC CEO Noel Quinn was opposed to the idea. Quinn, who rose through the ranks of the commercial bank, has previously argued that combining the coverage teams of the two divisions would be too disruptive After Quinn’s departure earlier this month, the idea is being given a fresh look as the company hunts for ways simplify its business. The combined unit would be home to about 92,125 employees in total, though some executives believe the tie-up could allow the bank to eliminate some duplicative back office roles."  https://lnkd.in/dwX2wFkQ #wealthmanagement #banking #financialservices

#ICYMI Bloomberg News Scoop: HSBC, the Asian focused lender, is weighing a marriage of two key divisions which would house a 90,000 strong workforce, sources say. No final decisions have been made and details of any potential restructuring could still change. Commercial banking, which has offerings for small and mid-size businesses in 50 markets, posted a profit before tax of $13.3 billion in 2023, while the global banking and markets arm brought in $5.9 billion.

HSBC’s recent overhaul is a bold and necessary move to stay competitive in an increasingly complex global environment. CEO Georges Elhedery has announced a reorganization that will split the bank into four divisions, aligning it geographically into east and west, with a strong focus on efficiency. Here’s how I see the key changes: • HSBC’s UK and Hong Kong businesses will become standalone units, making up two of the four divisions. • The other two divisions will focus on Corporate & Institutional Banking and International Wealth & Premier Banking. • The reorganization splits HSBC’s operations into eastern markets (Asia-Pacific & Middle East) and western markets (UK, Europe & Americas), providing a clearer focus across regions. With a workforce of over 213,000 employees, this restructuring aims to streamline operations, reduce the top management layer by one-third, and implement a $300 million cost-cutting drive. In my view, there are important takeaways here for other banks: 1. Align with geopolitical realities – As tensions between the east and west rise, banks must rethink their global strategies to manage risks and maintain agility. 2. Simplify management – Reducing decision-making layers can help banks react faster to market changes, particularly in diverse regions. 3. Focus on core markets – Creating specific divisions for key regions allows businesses to better address local regulatory challenges while capturing growth opportunities. What’s your take on this shift? Could this be the way forward for other global institutions? #BankingTransformation #FinancialServices #Leadership #GlobalBusiness #RiskManagement #Agility #Geopolitics #Strategy #CostCutting #FutureOfBanking

I just completed HSBC's Global Banking & Markets on @[Forage](urn:li:organization:68514998). In the simulation I: * Completed a simulation focused on the type of work undertaken by the Investment Banking & Markets teams in the Global Banking & Markets (GB&M) business at HSBC * Defined the strategic rationale for M&A and filtered target * Analysed transaction data to develop a summary of debt capital markets (DCM) activity * Matched financial products with various clients #HSBC

HSBC’s new CEO, Georges Elhedery, unveiled a restructuring plan aimed at simplifying the bank’s operations, reducing the number of divisions, and cutting upper management. This comes as HSBC grapples with lower interest rates affecting its income. Restructuring is a challenging decision, and for HSBC, it could mean either revitalisation or a struggle to maintain its competitive position. From my perspective, HSBC’s move is a great example of adapting organisational structure to financial realities—a skill I hope to use in my future career in finance. If HSBC’s approach proves effective, it may set a trend for other banks facing similar pressures. It will be interesting to see if more institutions streamline divisions and reduce management as a response to financial challenges. Read more:

I just completed HSBC's Global Banking & Markets on @[Forage] It was a great course full of knowledge in the banking sector * Completed a simulation focused on the type of work undertaken by the Investment Banking & Markets teams in the Global Banking & Markets (GB&M) business at HSBC * Defined the strategic rationale for M&A and filtered target * Analysed transaction data to develop a summary of debt capital markets (DCM) activity * Matched financial products with various clients #global_banking_markets #market_job_simulation #HSBC #HSBC_Bank #forage