HSBC has announced the cessation of certain investment banking activities in Europe, the UK, and the US, as reported by Bloomberg. The largest bank in Europe will no longer provide equity underwriting and advisory services outside its core operations in Asia and the Middle East.
CEO Georges Elhedery stated, “We will maintain more focused capabilities in mergers and acquisitions and equity capital markets in Asia and the Middle East and seek to terminate these activities in Europe, the UK, and the US.”
As part of this restructuring, HSBC will offer special incentives to retain affected staff until current projects are completed. Since taking the helm in September 2024, Elhedery has initiated a sweeping overhaul of the bank, asserting that a new structure will enhance competitiveness.
He has already announced the merger of commercial and investment banking operations outside Hong Kong and the UK, while eliminating layers of senior management. This latest move further narrows a division that has faced investor scrutiny over the years in its quest for market share.
Despite being one of the largest banks in the West, HSBC is not frequently the first choice for corporate clients seeking investment banking services.