HSBC shifts focus to Asia and the Middle East
HSBC is exiting parts of its investment banking business in Western markets to concentrate on Asia and the Middle East. The bank will discontinue its mergers and acquisitions (M&A) advisory and certain equities operations in Europe and the Americas while keeping a limited presence in these sectors in its key growth regions.
Reuters reported, that in a memo to employees, HSBC Bank CEO Michael Roberts said the bank aims to adopt a "more competitive, scalable, financing-led model." A spokesperson confirmed the contents of the memo. HSBC will retain its debt capital markets and leveraged acquisition finance operations globally.
CEO Georges Elhedery, who took over in September, is leading the restructuring to boost returns and sharpen HSBC’s focus on its strongest markets. HSBC already earns most of its profit from Asia and has spent years cutting back low-return businesses worldwide, including retail banking exits in France, Greece, and Canada. The memo did not specify how many jobs will be affected or whether some bankers will be reassigned to other divisions.
HSBC (Hongkong and Shanghai Banking Corporation) is a London-based bank with a long-standing presence in Asia. Founded in 1865 to facilitate trade between Europe and Asia, it operates in over 60 countries, specializing in commercial banking, wealth management, and corporate finance.
