HSBC eyes $3bn in potential cost savings - report
By Abigail Townsend
Date: Wednesday 11 Dec 2024
(Sharecast News) - Banking giant HSBC Holdings is mulling plans that could trim costs by at least $3bn, it was reported on Wednesday, as it continues to overhaul its global operations.
According to Bloomberg, citing unnamed sources familiar with the matter, the London-listed bank has told managers that the revamp would take until June 2025.
The total cost savings have not yet been finalised, but they are likely to reduce expenses by at least $3bn.
The expenses bill at HSBC, Europe's largest bank, is expected to come in at around $32.6bn this year, Bloomberg calculated.
HSBC declined to comment on the report.
The potential cost savings are one of several restructuring initiatives being introduced under new chief executive Georges Elhedery, who took over in September.
Like all banks, HSBC is facing a squeeze on profits as global interest rates start to fall. But it also wants to cut costs and, with relations between China and the west remaining fraught, better navigate geopolitical tensions.
In October, it said its UK and Hong Kong businesses would become two of four new standalone units, alongside corporate and institutional banking, and international wealth and premier banking.
"The new structure will result in a simpler, more dynamic and agile organisation," Elhedery said at the time.
It then announced further management changes last week, including several high-profile departures. Among those leaving the bank are Annabel Spring, global head of private banking and wealth, and Colin Bell, who ran HSBC in Europe.
Elhedery said the new management structure would provide the lender with a "clear competitive advantage and the greatest opportunity to grow".
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