João Araújo’s Post

HSBC Considers Merging Commercial and Investment Banking Divisions HSBC's new CEO, Georges Elhedery, is considering combining the bank's commercial and investment banking divisions as part of his strategy to streamline operations and reduce costs. This potential restructuring could have significant implications for the banking industry. Key facts: - The combined division would become HSBC's largest revenue generator, contributing around $40 billion annually. - The merger would bring together a workforce of over 90,000 employees. - In 2023, the commercial banking division posted a profit before tax of $13.3 billion, while the global banking and markets arm brought in $5.9 billion. - This move follows similar restructuring efforts by competitors like JPMorgan, which combined its commercial and investment banking divisions earlier this year. - Elhedery's focus on cost reduction comes as central banks worldwide begin to cut interest rates, potentially impacting the margins of global lenders. The potential merger of HSBC's commercial and investment banking divisions raises an important question for incumbent banks: In an increasingly competitive and evolving financial landscape, how can banks effectively restructure their operations to optimise efficiency, reduce costs, and maintain a competitive edge? As the industry continues to face challenges such as changing interest rates and the need for digital transformation, banks must carefully consider their organisational structures and strategies to remain agile and adaptable. HSBC's potential move highlights the importance of continuously evaluating and adjusting business models to meet the demands of the modern banking environment. Source: Bloomberg #hsbc #digitaltransformation #restructuring #banking

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:

One of the most ambitious wealth projects by #HSBC in China under its “pivot to Asia” strategy, is being challenged internally at a time when China’s economic growth slowed with HSBC’s new helmsman vowing to adhere to strong cost discipline. The bank is reviewing expenses and operational controls at its China digital wealth business Pinnacle, in a move that could result in layoffs and mark an abrupt reversal of the lender's ambition for the unit, several sources said. As part of the review, the lender is looking at staff salary structures and probing whether suppliers inflated expenses, contributing to a sharp spike in costs that outpaced revenues. A downsizing of Pinnacle, which was launched in 2020 and sells insurance and fund products, would be a setback for Europe's largest lender by assets, which has doubled down on Asia while divesting from less-profitable businesses elsewhere. w/ Engen Tham Sumeet Chatterjee and edited by Paritosh Bansal #reuters #georgeselhedery #wealthmanagement #wpb #china #insurance #review #probe #expenses #exclusive

HSBC is shaking things up, asking senior managers to reapply for roles in its newly combined Corporate and Institutional Banking division as part of the CEO's drive to simplify operations. The restructuring merges teams from commercial banking and global banking, while replacing general manager titles with the more widely recognized managing director rank. With a focus on cost-cutting and profits under pressure, the bank plans to finalize its new structure by February. Despite efforts like $35 billion in share buybacks, HSBC's performance continues to lag behind competitors, and this is an effort to make the bank's operations more efficient and competitive. #HR #HumanResources #HSBC #BankingNews #CorporateRestructuring #FinancialServices #LeadershipChanges

🚨 **Big Moves in Banking: HSBC Reshapes Its Workforce Strategy** 🚨 In a bold move to streamline operations, HSBC is reportedly asking hundreds of managers to reapply for their roles as part of a significant restructuring effort. This shift reflects the bank’s focus on agility and efficiency in an ever-evolving global financial landscape. Such changes highlight the growing trend of organizations rethinking traditional workforce structures to remain competitive. While this may be a challenging transition for employees, it also underscores the importance of adaptability and upskilling in today’s professional environment. **What does this mean for the future of banking?** 🌍   - A sharper focus on lean, efficient management.   - Greater emphasis on innovation and digitization.   - Opportunities for new talent to rise and reshape the organization.  As we witness yet another major institution navigating transformation, it’s a reminder for all industries to stay future-ready. What are your thoughts on these changes? Is this the future of corporate leadership?  #Banking #Leadership #FutureOfWork #HSBC #Restructuring https://lnkd.in/g3H227W2

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

🚨 BREAKING: HSBC Announces Major Overhaul, Splitting into Four Divisions Starting January 1, 2025, HSBC will streamline its operations into four key business areas and create a new geographic set-up separating east from west, to cut costs and navigate geopolitical tensions. The four key business areas: ▶ 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 – A new division combining Commercial Banking (outside the UK and Hong Kong) with Global Banking & Markets. ▶ International Wealth & Premier Banking – Focused on wealth growth, especially in Asia and the Middle East. According to CEO Georges Elhedery, this move will create a more agile, customer-focused organisation, enabling HSBC to better capitalise on growth opportunities while simplifying decision-making. The aim is to unlock the bank’s full potential, enhance customer service, and drive success in its strongest markets, including the UK and Hong Kong. A new, smaller Group Operating Committee will lead these changes, reducing duplication and improving efficiency across the business. Pam Kaur, currently group chief risk and compliance officer will assume the CFO post on Jan. 1 — the lender’s first female finance chief. More details are expected with HSBC's 2024 full-year results. #HSBC #Banking #Finance

HSBC Holdings has launched a major restructuring initiative under CEO Georges Elhedery to streamline its operations and improve overall efficiency. The bank has instructed hundreds of managers to reapply for positions in its newly created #corporate and institutional #banking division. This restructuring process, which is currently underway, is expected to result in the dismissal of several hundred senior bankers and managing directors. https://lnkd.in/gX5GtYp9

HSBC is making bold moves to reshape its global structure and meet the demands of a changing world. Here’s a look at the bank’s new direction and what it means: 🔹 GEOPOLITICAL ADAPTATION: By splitting into Eastern and Western divisions, HSBC can now tailor strategies to fit the unique needs of each region. 📍 🔹 FOCUSED GROWTH: 4 new units — 2 core regional bases in the UK and Hong Kong, along with separate divisions for corporate banking and wealth management—will enhance HSBC’s ability to lead in high-potential areas. 📈 🔹 CLIENT-CENTRIC APPROACH WITH LOCAL EXPERTISE: HSBC advertise itself as “The World’s Local Bank”. This split allows the bank to bring even more targeted, on-the-ground support to clients, especially in high-growth areas like the Middle East and Asia-Pacific. 🌏 While it’s a big shift, the goal is to keep local connections strong within a global framework. AND... 🔹 LEADERSHIP SHIFT: Congratulations to Ms. Pam Kaur, HSBC’s first female CFO in 159 years! Her expertise in risk and compliance will help guide the bank’s new strategy. 👏 As CEO Georges Elhedery puts it, these changes aim to “unleash our full potential and drive success into the future.” 🌠 Let's see what the future holds for HSBC... #HSBC #Banking #GlobalBusiness #Leadership #Finance #Geopolitics #LeongSee