HSBC CEO Georges Elhedery has dispelled speculation that the new restructuring of the bank’s “East” and “West” divisions hinted at a separation, according to a statement. Financial Times report.
Elhedery stressed that the overhaul, which will make the Hong Kong and UK retail units self-sustaining, aims to improve efficiency and responsiveness, not split the bank in response to global tensions.
Restructuring aligns HSBC‘s operations are spread across two main regions, covering Asia Pacific and the Middle East for “Eastern” markets, and Europe, the UK and the Americas for “Western” markets.
The move simplifies HSBC’s previous five-region model to better serve global customers.
HSBC also reported strong third-quarter results, with a 10% rise in pre-tax profit to $8.5 billion, driven by growth in wealth management.
Despite this, net interest income declined, reflecting market difficulties, while operating costs increased due to inflation and technology investments.
Elhedery noted that further restructuring details and planned cost reductions through workforce reductions will be announced in February.
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