HSBC Considers Combining Banking Divisions

(Reuters) – HSBC is contemplating merging its Commercial and Investment banking divisions to streamline operations and reduce costs, as reported by Bloomberg News on Monday, citing sources familiar with the situation.

The proposed combined division could become the bank’s largest revenue generator, potentially contributing around $40 billion annually to HSBC’s revenue.

No definitive decisions have been reached, and details of any possible restructuring may still change, according to the mentioned sources.

HSBC did not provide a comment in response to a Reuters inquiry.

If successful, this would mark the first significant change under the new chief, Georges Elhedery, who aims to transition the bank from restructuring to growth amid the possibility that interest rate hikes may have peaked and ongoing geopolitical tensions.

In recent years, HSBC has also reduced its presence in Western markets like the US, France, and Canada, focusing instead on Asia and regions where it has a competitive edge.