HSBC will cut thousands of jobs and further reduce its investment banking footprint to save $1.5 billion annually, despite posting record 2024 profits, reports Reuters.
The bank’s chief executive Georges Elhedery is restructuring to focus on core strengths, exiting M&A advisory and ECM in the UK, Europe, and the Americas, including closing its UK corporate broking arm.
While the eight per cent staff cost reduction likely means fewer than 8pc of employees will be cut, no target was given.
HSBC will maintain M&A and ECM in Asia and the Middle East, along with global DCM and financing. It will focus on areas like DCM, leveraged finance, and transaction banking. An amount of $1.8bn is earmarked for restructuring costs.
HSBC reported record 2024 pre-tax profit of $32.3bn, up 6pc. The bank’s Q4 profit was $2.28bn, up from $977 million a year earlier. Full-year investment banking fees rose 5pc to $1.08bn. HSBC targets a “mid-teens” RoTE for 2025-2027.
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