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HSBC #CEO #Shakes Up #Europe's Biggest #Bank #byline Joe Wallace The Wall Street Journal New HSBC CEO Shakes Up Structure of Europe's Biggest Bank By Joe Wallace Reporter #GeorgeElderhery became #chiefexecutive in September. Analysts say #costs #cuts are likely to be a key focus during his first months. (HSBC/via Reuters) HSBC unveiled a revamped structure designed to cut costs, at a time when falling #interestrates are likely to eat into income at Europe's biggest bank by assets. Under the plan laid out Tuesday, HSBC will merge its #commercial and #investmentbanking units. The U.K. and Hong Kong, HSBC's biggest markets, will have standalone divisions. Rounding off the four units is an arm catering for the world's rich, a key focus for HSBC in Asia and the Middle East. HSBC will also have a new geographic split between "Eastern markets" in Asia and the Middle East and "Western markets" in Europe and the Americas. Chief Executive Georges Elhedery, who took over last month, said the changes would simplify the bank's operations and reduce duplication. HSBC shares were little changed in London. Even after years of shedding businesses around the world, including its U.S. retail network, HSBC remains one of the world's largest and most complex banks, with more than 220,000 staff at the end of last year. Doubling-up of processes and decision-making is prevalent and communication lines are sometimes tangled, according to analysts. They say Elhedery—HSBC's former chief financial officer—is likely to make cost cuts a primary focus of his early months in charge, in part because the bank is more exposed to falling rates than its British rivals. On Tuesday, HSBC said Chief Risk and Compliance Officer Pam Kaur will become CFO, taking over the role vacated by Elhedery. After quitting Canada and France in the past year, HSBC's final major retail network outside the U.K. and Hong Kong is in Mexico. Tuesday's changes raise questions about HSBC's commitment to its business there, although exiting may be difficult, said Citigroup analysts. Citi is itself amid a drawnout departure from Mexico. HSBC Holdings PLC (UK Reg) UK:HSBA (U.K.: London) p681.50 GBp6.100.90% HSBC Holdings PLC ADR HSBC (U.S.: NYSE) $44.48 USD0.300.69%

HSBC's new CEO, Georges Elhedery, has initiated a significant restructuring of the bank, which is the largest in a decade. This move is driven by several key factors: Cost Efficiency: HSBC aims to cut costs and improve efficiency. The restructuring will streamline operations, reduce duplicate roles, and simplify the organizational structure. This is expected to save the bank up to $300 million. Focus on Core Markets: The bank is consolidating its operations into four main business units: Hong Kong, the UK, corporate and institutional banking, and international wealth and premier banking. This will allow HSBC to focus on its core markets and areas where it has scale, particularly in Asia. Adapting to Market Changes: With central banks around the world lowering interest rates, HSBC is under pressure to maintain its profit margins. The restructuring is part of a strategy to adapt to these changing market conditions and ensure long-term growth. Leadership Changes: Alongside the restructuring, HSBC has appointed Pam Kaur as its first female Chief Financial Officer (CFO). This leadership change is part of the bank's broader strategy to bring in new perspectives and drive the transformation. Overall, the restructuring is designed to create a simpler, more dynamic, and agile organization that can better execute its strategic priorities. It's a bold move by the new CEO to position HSBC for future growth and success. HSBC #bank #data #economy #CFO #CEO #financial

HSBC is making strategic moves in the face of challenging times. The bank is set to pay its MDs $1.4m amidst ongoing job cuts, emphasizing the need to balance profitability and growth. Over 17 years, HSBC has significantly reduced its workforce from 316,000 to 221,000 employees, with 95,000 staff departing. The bank plans to further cut costs globally by 5% this year, streamlining operations and eliminating duplication under a new leadership structure. As one senior banker highlighted, these changes aim to strengthen the bank's core functions for sustained success. https://lnkd.in/egCkEGTy #HSBC #Banking #Strategy #Leadership

HSBC's Bold New Chapter! HSBC has reported a significant 10% increase in pre-tax profits, reaching $8.5 billion for the quarter ending Sep-24. This impressive performance not only exceeded analysts' expectations but also comes on the heels of a substantial restructuring announced by the bank. As HSBC embarks on one of the most significant shakeups in its 159-year history, the firm plans to reorganize itself into geographical divisions focusing on eastern and western markets. This strategic move is a response to increasing geopolitical tensions and the pressing need to enhance operational efficiency. This proactive approach to changes reflects a commitment to adapting to an ever-evolving global landscape. In addition to the restructuring, HSBC is also set to buy back $3 billion of its own shares, a move that signals confidence in its financial health and commitment to delivering value to shareholders. Following the announcement, HSBC's London-traded shares saw a nearly 4% rise. As part of this transformation, HSBC has announced the expected completion of the sale of its Argentinian business by the end of the year. The bank has been increasingly directing its focus towards Asia, where it generates most of its revenue, reflecting a clear strategy to reinforce its presence in this dynamic region. Notably, HSBC has also made strides in leadership diversity with the appointment of Pam Kaur as its first female Chief Financial Officer. This move not only strengthens the leadership team but also highlights HSBC's commitment to fostering diversity and inclusion. HSBC’s proactive measures indicate a readiness to navigate these challenges while continuing to drive profitability and growth. #HSBC #Banking #FinancialResults #Leadership #StrategicGrowth #Diversity #Geopolitics

HSBC Holdings PLC (LSE:HSBA) chief executive Noel Quinn delivered some surprises with the bank's first quarter results, including announcing his retirement and a new $3 billion share buyback.   The Asia-focused lender reported a pre-tax profit of $12.7 billion for the first three months of 2024, down from $12.9 billion a year ago but beating consensus forecasts of $12.6 billion. Profit was boosted by a $4.8 billion gain from the disposal of its Canadian banking business, partly offset by a $1.1 billion impairment as it prepared to sell its business in Argentina. Last year's profit was boosted by a $2.1 billion impairment reversal and a $1.5 billion gain from the acquisition of Silicon Valley Bank UK. Revenue, or net operating income, came in at $20.8 billion, up 3% year on year, slightly below expectations, while net interest income fell 3.3% to $8.7 billion due to deposit migration, which was better than... More at #Proactive #ProactiveInvestors http://ow.ly/GjFQ105rhyt

BREAKING: HSBC’s rise and fall in profits and revenue. Interested in a career at HSBC? FREE ARTICLE 🎁 🔹 HSBC reports a 10% profit drop in Q3 2023, despite a robust 40% surge in capital markets and advisory revenue. 🔹Major banks face a Q3 slump in deal fees, but HSBC's CEO Noel Quinn remains optimistic about achieving 2023 equity targets. Read the FULL article here for FREE: https://lnkd.in/ecisdxE5 Follow Krugman Insights for more industry news. Stay tuned for more on HSBC’s latest earnings. 📈 #HSBC #BusinessTrends #investmentbanking #hiringnews #analyst #tradingprofit #revenue #advisory #free

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 beats expectations in first-quarter earnings; CEO Noel Quinn to retire HSBC beat market expectations in its first-quarter earnings report Tuesday, and announced the surprise departure of Group Chief Executive Officer Noel Quinn. Revenue came in at $20.8 billion, up 3% from the same period a year ago and compared with the median LSEG forecast for about $16.94 billion. Pretax profit in the January to March period came in at $12.65 billion, falling about 2% from a year ago when profit before tax came in at $12.89 billion. Still, that figure beat the $12.61 billion estimates by analysts’ forecasts compiled by the bank. Profit after tax income decreased to $10.84 billion — lower than the $11.03 billion seen in the first quarter of 2023. HSBC, Europe’s largest bank by assets, has approved a first interim dividend of 10 cents per share, as well as a special dividend of 21 cents per share, following the completion of the sale of its banking business in Canada. News credit CNBC #news #technews #dailynews #dailynewsupdates #viralnews #trendingnews

  HSBC has almost doubled the salary of its chief executive, Noel Quinn, despite reporting a fourth-quarter profit drop, unexpectedly hit by the crisis in China's property market. The London-based lender said on Wednesday it had agreed a £10.6m package for Quinn, a significant increase on the £5.6m it had received for 2022, thanks a long-term bonus in HSBC shares worth more than $5 million. #Chinapropertymarketcrisis #CommercialrealestatemarketChina #HSBCannualpretaxprofit #HSBCCEOsalaryincrease #HSBCfourthquarterprofitdrop #HSBCsharebuybackplan #HSBCsharepricedecline #HSBCshareholderdividendpayout #NoelQuinncompensationpackage