Management ranks among major banks HSBC It can start to fade quickly.
Financial Times (FT) reported On Thursday (October 10), sources familiar with the matter said the new CEO Georges Erhedery HSBC plans to restructure its senior banking ranks as part of a plan to save up to $300 million.
Reports surfaced last month that El Hederi was working on an effort to integrate HDBC's commercial banking operations with its global banking and markets operations. The merger will create a unified vision with 90,000 staff and become HSBC's largest source of revenue, generating $40 billion a year.
The FT reports that although staff have not been provided with details of the plans, preparations are underway and are expected to be announced by the end of this month.
HSBC declined to comment when contacted by PYMNTS.
“[The merger] There will be cuts at the top level of management,” one of the people told the FT. “It's going to impact the seniors and some of the big roles. . . . That's the most expensive tier, and that's where the costs are.”
However, the report notes that this $300 million target is just 1% of the $32 billion in costs reported by the UK-based multinational bank in 2023.
“Many of the back-office functions are already integrated into both departments,” said another person. “The problem arises with overlapping layers of management. [commercial bank] And there will only be one investment bank needed in the future. ”
The commercial banking sector, which includes lending to small and medium-sized enterprises, trade finance and payment services, saw costs increase in the first half of 2024, with costs for both sectors increasing by 12% to $3.9 billion.
Meanwhile, HSBC is also looking for a new chief financial officer. The position was held by Mr. Elkederi until he was replaced as CEO by Noel Quinn last month. Pam Kaul, the company's chief risk and compliance officer, is the top candidate to become CFO, people familiar with the matter said.
In other HSBC news, the bank last week launched an embedded finance venture in partnership with B2B global trading network Tradeshift.
“Businesses are increasingly looking for seamless financial solutions that are built into their e-commerce processes so they can access them when and where they need them.” Vinay Mendoncasaid the new business's CEO in a news release.
“HSBC's SemFi aims to provide built-in capabilities like this to help businesses grow. We aim to bring the best of both worlds to our enterprise customers and e-commerce partners. Start-up technology ” combined with the global reach and expertise of an international bank.”
