HSBC Holdings plans to ramp up investment banking efforts in Asia and the Middle East following a strategic retreat from the US and Europe, CEO Georges Elhedery told Bloomberg Television.
Elhedery, who took over in September, said the bank is reallocating US$1.5 billion in cost savings toward areas of growth.
The focus includes strengthening debt and financing capabilities globally, while sharpening its presence in Middle Eastern equity capital markets and M&A advisory.
The shift follows a broad restructuring under Elhedery’s leadership, which merged commercial and investment banking units, designated the UK and Hong Kong operations as standalone businesses, and significantly scaled back equity and M&A activities in Western markets.
HSBC expects to incur US$1.8 billion in restructuring charges over the next two years, largely related to severance, with most decisions already finalised.
Senior management ranks have been trimmed, reducing the key operating committee to 12 from 18, and some investment bankers have been placed on short-term arrangements.
Top shareholder Ping An Insurance has endorsed the changes, a reversal from its earlier confrontational stance in 2022.
HSBC shares in Hong Kong have climbed nearly 30% since Elhedery assumed the role.
