HSBC Holdings is reportedly evaluating a plan to consolidate its wholesale, retail, and private banking operations in Singapore into a single entity, aiming to simplify its local operating structure. People familiar with the matter said the adjustment would bring HSBC’s core banking services in Singapore under one framework, reducing internal coordination complexity.

An HSBC spokesperson responded that the group continuously reviews its organizational structure to identify simplification opportunities, emphasizing that “all banking entities in Asia-Pacific remain owned, managed, and disposed of by The Hongkong and Shanghai Banking Corporation Limited, and there are currently no plans to change this.”

Restructuring Background and Recent Moves

The potential adjustment is part of a sweeping overhaul led by CEO Georges Elhedery since he assumed the role in September 2024. Over the past two years, he has overseen the closure, merger, or sale of multiple businesses, redirecting resources toward markets with higher growth potential.

In July this year, HSBC agreed to sell HSBC Life Singapore to German insurer Allianz for approximately $2.1 billion (around NT$66 billion), with the transaction expected to close in the first half of 2027. The two parties also entered into a 15-year distribution partnership.

HSBC’s current operations in Singapore include HSBC Bank (Singapore), a local subsidiary established in 2016 that handles retail banking and wealth management, as well as a separate branch operating under The Hongkong and Shanghai Banking Corporation. The new restructuring plan would consolidate these dispersed business functions into a unified framework.

The Scale Gap Between Singapore and Hong Kong

While Singapore is an important market for HSBC in Asia-Pacific, its business scale still falls far short of Hong Kong. The following table compares key metrics for the first half of 2026:

MetricHong KongSingaporePre-tax profit$7.8 billion$774 millionHeadcountOver 30,000Approximately 3,600Wholesale loan balances$144 billion$21.8 billion

Note: Hong Kong’s pre-tax profit is approximately NT$250 billion, while Singapore’s is around NT$24 billion. Wholesale loan balances stand at approximately NT$4.6 trillion for Hong Kong and NT$690 billion for Singapore.

HSBC also spent $14 billion (approximately NT$440 billion) this year to complete the privatization of Hang Seng Bank, further cementing its market position in Hong Kong. The bank is simultaneously rebuilding its investment banking franchise, currently working on roughly 40 Hong Kong initial public offerings (IPOs), a sharp increase from five in 2025. Over the past year, HSBC has also recruited more than a dozen investment bankers for its China business.

Continued Investment in Singapore

Even amid the restructuring, HSBC continues to double down on the Singapore market. The bank plans to establish a global artificial intelligence hub in Singapore and recruit more than 100 AI specialists. In India, HSBC has purchased at least $3 billion (approximately NT$95 billion) in government bonds since July, underscoring that its Asian footprint is not shrinking despite the overhaul.

HSBC’s corporate restructuring is not without precedent. Standard Chartered consolidated its Singapore operations into a single local subsidiary in 2019, establishing a dual-hub structure between Singapore and Hong Kong to simplify its network and reduce costs.

Discussions on HSBC’s Singapore restructuring remain ongoing, with no specific timeline announced. Market observers believe the adjustment reflects HSBC’s strategic direction of continuously optimizing resource allocation across Asia-Pacific, particularly as geopolitical risks in Hong Kong intensify, strengthening Singapore’s functionality as a regional hub.