HSBC restructuring global banking business to reduce costs
(10 June 2016 – Global) HSBC has distributed an internal memo detailing plans of a restructuring to its global banking division to cut costs and make the business more "agile".
Reports say the reorganisation is further development of plans announced in June 2015 to cut 20 percent of its workforce and contract its investment bank by a third as it seeks to boost profits.
The memo, from global banking co-heads Robin Phillips and Matthew Westerman, said changes include creating a new corporate, financials and multinationals banking unit to be headed by Philippe Henry.
"Our new structure will ...improve returns for our shareholders by improving our profitability and generating efficiencies," the pair said in the memo.
HSBC has confirmed the reports.
Additionally, the bank said it would combine its corporate finance and mergers and acquisitions execution teams into a new advisory unit.
As part of the restructuring, Reuters reported that John Crompton, HSBC's ex-global head of corporate finance, and Florian Fautz, global head of M&A, left the bank late May.
Subscribe