HSBC considers merging commercial, investment banking to reduce costs

HSBC is exploring the possibility of combining its Commercial and Investment banking divisions to streamline operations and reduce costs, Bloomberg News reported on Monday, citing people with knowledge of the matter.

The combined division would become the bank’s largest revenue generator, contributing approximately $40 billion annually. However, no final decisions have been made, and the restructuring plans could still change.

HSBC declined to comment on the report.

If successful, this would be the first major restructuring under the leadership of new CEO Georges Elhedery. Elhedery is committed to shifting the bank’s focus from restructuring to growth, especially as interest rate hikes may be nearing their peak and geopolitical tensions persist.

In recent years, HSBC has reduced its presence in Western markets such as the United States, France, and Canada. Instead, the bank preferred to focus on expanding its operations in Asia and other markets where it has a significant presence.

Attribution: Reuters & Bloomberg