HSBC to cut investment banking offering in UK, Europe and Americas
is to wind down its investment banking offering in the UK, Europe and Americas as part of a group-wide restructuring, it was reported on Tuesday.
The bank, Europe's biggest, intends to close its mergers and acquisition advisory and equity capital markets businesses outside of Asia and the Middle East.
In an email sent to staff and seen by Reuters and Bloomberg, among others, HSBC Bank chief executive Michael Roberts said the intention was to move to a "more competitive, scalable, financing-led model".
Roberts did not provide details, such as the number of expected job losses. But he acknowledged the news would be "unsettling" for many employees. One banker told the Financial Times that a lot of people were in shock. "No one knew at all [this was coming]," they said.
Chief executive George Elhedery, who took over from Noel Quinn in September, is radically overhauling the blue chip's global offering. As well as looking to cut costs, he wants HSBC to refocus away from the west in favour of Asia, its most important market.
Globally, investment banking accounts for around 6% of HSBC's total revenues.
A spokesperson confirmed the contents of the memo to Reuters.
In a statement, the London-listed bank said the restructuring was part of "ongoing efforts to simplify HSBC and increase leadership in our areas of strength".
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