HSBC Targets $1.5 Billion in Cost Savings by 2026 with Major Restructuring

CEO Georges Elhedery leads a strategic overhaul to simplify operations, cut expenses, and focus on Asia-driven growth.

HSBC reported a 6.5% increase in pre-tax profit to $32.3 billion for 2024, exceeding market expectations.
The bank announced plans to cut $1.5 billion in annual costs by the end of 2026, including $300 million in savings targeted for 2025.
Restructuring efforts include an 8% reduction in workforce costs, streamlining operations, and redeploying resources to high-growth areas.
A $2 billion share buyback program and increased dividends were unveiled, reflecting strong financial performance.
CEO Georges Elhedery has reorganized the bank into four core divisions and is prioritizing Asia, where HSBC generates most of its revenue.