According to a Financial Times report on Thursday, HSBC (HSBA.L) is getting ready to announce $1.5 billion in yearly cost savings from the adjustments made as part of its extensive restructuring activities.
The broader Hang Seng Index (.HSI) climbed 2.5% on Friday, while the bank’s Hong Kong shares lost 0.4%.
In order to increase returns and narrow its focus on Asia, where it generates the majority of its profits, HSBC is revamping its dealmaking and business consulting operations in the West under CEO Georges Elhedery, who took over from Noel Quinn in September 2024.
In its largest pullback from investment banking in recent memory, the bank announced last month that it will accelerate a shift towards Asia by closing its M&A and certain equity divisions in Europe and the Americas.
Regarding the savings goal that the FT reported, HSBC chose not to comment.
When HSBC releases its full-year results, Elhedery is expected to disclose the $1.5 billion in cost savings, according to the FT.
In recent years, HSBC has been reducing its global presence by leaving dozens of low-returning consumer banking operations in countries like Greece, Canada, and France.
In addition to implementing a new leadership structure, the bank said in October that it will merge some of its commercial and investment banking operations.
HSBC stated that the adjustments would divide its activities into four business lines: wealth banking, corporate and institutional banking, Hong Kong, and the United Kingdom.
