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HSBC to shake up global banking business to cut costs

Published 06/06/2016, 12:25
Updated 06/06/2016, 12:30
HSBC to shake up global banking business to cut costs
HSBA
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LONDON (Reuters) - HSBC (L:HSBA) is to restructure its global banking division to cut costs and make the business more "agile", according to an internal memo seen by Reuters on Monday.

The reorganization is part of HSBC's plans announced last June to slash nearly one in five jobs and shrink its investment bank by a third as it seeks to boost profits.

HSBC did not say how many jobs would be cut in this cost-saving drive, which follows the re-integration of the capital finance business back into global banking, which was announced in February.

Reuters reported last week that the bank would be trimming dozens of senior jobs in its investment bank as a result of a pending reshuffle.

The changes include setting up a new corporate, financials and multinationals banking unit to be headed by Philippe Henry, according to the memo from global banking co-heads Robin Phillips and Matthew Westerman.

"Our new structure will ...improve returns for our shareholders by improving our profitability and generating efficiencies," the pair said in the memo.

A spokesman for HSBC confirmed its contents.

HSBC also said it would set up a new advisory team, combining corporate finance with mergers and acquisitions execution.

IFR, a Thomson Reuters publication, earlier reported that John Crompton, who was HSBC's global head of corporate finance, and Florian Fautz, global head of M&A, left the bank last week as part of the restructuring.

Several dozen junior staff will leave as part of the changes, IFR reported.

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