HSBC Eyes Major Shakeup with Potential Merger of Commercial and Investment Banking Units
1min read HSBC Holdings is currently considering merging its commercial banking and investment banking units as part of a broader initiative led by the new CEO, Georges Elhedery, to eliminate redundancies within the company and reduce expenses.
According to sources familiar with the matter, this move would integrate HSBC’s global banking and markets business—which serves large multinational corporations and includes its trading and investment banking divisions—with its commercial banking operations.
The combined unit would become HSBC’s largest revenue contributor, generating approximately $40 billion annually, surpassing its wealth management and personal banking segments. This strategic consolidation is also expected to mobilize HSBC’s substantial workforce of over 90,000 employees to capture business from companies of all sizes.
The sources, who requested anonymity due to the confidential nature of the discussions, indicated that no final decisions have been made yet and the potential restructuring details could still change. An HSBC spokesperson declined to comment on the matter.
The news briefly led to a surge in HSBC’s stock price, which had gained 1.9% by 13:30 London time after initially spiking.
In the pre-market trading, HSBC shares were up more than 2% following the consideration of merging its commercial and investment banking operations to cut costs.