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HSBC is preparing to unveil $ 1.5 billion in annual savings from the radical overhaul of CEO Georges Elhedery.
The largest European lender will organize the figures for the first time on Wednesday, February 19, when Elhedery will present investor year results.
It should point out $ 1.5 billion in savings from changes after occasional costs, according to two people familiar with the problem.
HSBC refused to comment.
Elhedery announced a radical reorganization in October, weeks after taking the reins, to reduce duplication and help withdraw the costs of an organization that has long been deemed to be a wood bureaucracy.
The CEO said the plans would result in a “simpler, more dynamic and agile organization”. Bank shares have increased by 30% since the announcement.
Elédery’s plans are at the center of modifications to the way the group based in London is organized. It now has individual units dedicated to its two main markets in the United Kingdom and Hong Kong, a unit focused on corporate and institutional banking services, and another for international wealth and leading banks.
Reorganization has meant the network of commercial and investment banks, two of the three HSBC divisions in its old structure.
Combining them allowed Elhedery to reduce the number of bankers doubling in different geographies – in particular in the ranks of seniors – and a large part of the tight belt so far to layoffs. He reduced the number of best managers by about half.
On Wednesday, HSBC is also preparing to quantify the expected savings in Eledery’s decision to withdraw from certain non -essential markets, a figure that the two people put to around 1.5 billion dollars.
HSBC announced in January that it would withdraw from key parts of its investment bank business in the United Kingdom, Europe and the Americas, which has attracted many employees to these companies offset. He also decided to close his Zing payment application a year after its launch.
The bank acted quickly to implement the Eledery’s plan, but always argues what to do with its operations in Mexico, according to discussions of the discussions.
HSBC examined considerably the reduction of its activities in Mexico in the context of a broader examination of its non -essential retail operations, previously reported the Financial Times.
The bank was under pressure to control costs as the interest rate period increases – which has strengthened the benefits of the bank – affects its end.
Its margin of net interest, a key measure of loans profitability, fell in the third quarter of 2024. Its costs increased by 2%, partly due to inflation.
The HSBC staff have remained stubbornly high in recent years despite the efforts of the Elhedery predecessor to eliminate the bank.
Former Director General Noel Quinn had previously committed to reducing the number of full -time jobs to 200,000 by the end of 2023. At the end of September of last year, he had 215,180 full -time employees.
