HSBC Holdings Plc said it would merge two of its largest businesses, outside the UK and Hong Kong, and restructure regionally as Chief Executive Officer Georges Elhedery looks to rein in costs against a backdrop of falling interest rates.
The banking behemoth will combine its global commercial and investment banking operations, according to a statement. It will also create a new international Wealth and Premier Banking business and set up Western and Eastern regional units.
“The new structure will result in a simpler, more dynamic, and agile organisation as we focus on executing against our strategic priorities, which remain unchanged,” Elhedery said in the statement.
With central banks around the world beginning to cut interest rates, Elhedery has been under pressure to trim costs in order to protect the firm’s margins. To that end, he’s asked staffers to be more careful with their spending and put fresh limits on investment bankers’ travel.
HSBC also announced the appointment of Pam Kaur as chief financial officer.
HSBC is one of the world’s largest banking and financial services organisations. It has been active in Luxembourg since 1977, where it offers banking and financial services including private banking, corporate banking, securities services and asset management, according to its website.
(Information on the Luxembourg branch added by the Luxembourg Times.)
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