Overview

• HSBC's new CEO, Georges Elhedery, is initiating a merger of the bank's commercial and investment banking divisions to streamline operations.
• The restructuring aims to eliminate duplicate senior management roles, targeting $300 million in annual savings.
• HSBC's cost-saving plan is part of a broader strategy to adapt to changing economic conditions and declining net interest income.
• An official announcement regarding the restructuring is expected by the end of October, though details have not been shared with staff yet.
• Despite the planned cuts, HSBC recently reported strong financial performance, including a $21.6 billion pre-tax profit for the first half of 2024.