HSBC CEO Georges Elhedery has dispelled speculations that the bank’s new “east” and “west” division restructuring hints at a separation, according to a Financial Times report.
Elhedery emphasized that the overhaul, which will make Hong Kong and UK retail units stand-alone operations, aims to improve efficiency and responsiveness, not to divide the bank in response to global tensions.
The restructuring aligns HSBC’s operations within two primary regions, covering Asia-Pacific and the Middle East for the “eastern” markets, and Europe, the UK, and the Americas for the “western” markets.
This move simplifies HSBC’s previous five-region model to better serve global clients.
HSBC also reported strong Q3 results, with a 10% year-on-year rise in pre-tax profits to US$8.5 billion, driven by growth in wealth management.
Despite this, net interest income declined, reflecting market challenges, while operating costs rose due to inflation and tech investments.
Elhedery noted that further restructuring details and planned cost-cutting through workforce reductions will be announced in February.
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