HSBC Bank (HSBC.US) accelerates investment banking business restructuring and abolished dozens of analyst positions

The Zhitong Finance App learned that people familiar with the matter revealed that Europe's largest bank, HSBC Holdings (HSBC.US), recently cut more than 20 analysts, indicating that the bank is speeding up the restructuring process of the investment banking business.

Sources said that those affected by this layoff include Steven Major (Steven Major), the global head of fixed income research at HSBC based in Dubai. According to people familiar with the matter, the current layoffs are mainly concentrated in Europe.

One of the sources said that as part of large-scale business adjustments, the London-based bank is integrating macro-strategy research services for various types of assets such as foreign exchange and fixed income.

This business restructuring comes at a time when CEO Georges Elhedery (Georges Elhedery) continues to streamline the business and improve operational efficiency. Since taking office in September last year, Elhedri has promoted the merger of HSBC's commercial banking business with investment banking, and independent operations in the UK and Hong Kong, China. In addition, the bank has drastically cut back on most mergers and acquisitions and stock underwriting operations in the US, the UK, and mainland Europe.

An HSBC spokesperson said in an email statement: “Global research, stock sales and trading are the core pillars of our corporate and institutional banking business.”

It is estimated that the large-scale restructuring led by Elhedri will cost HSBC $1.8 billion over the next two years. Additionally, the bank will invest billions of dollars to reallocate resources from low-return business areas to sectors with more revenue potential.

Recently, HSBC integrated its capital market and corporate consulting departments to establish a new business division with the aim of seizing a larger share of the booming private credit market.

Since this year, the cumulative increase in HSBC's stock price in London has exceeded 10%. However, as one of the world's largest trade finance institutions, and most of its revenue comes from the Asian market, HSBC is still highly exposed to the risk of global tariff disputes and heightened tension between China and the US.