HSBC's Geopolitical Risk Team Winding Down Amid Rising Global Tensions

HSBC is winding down its geopolitical risk team, affecting fewer than 10 roles across Asia and Europe. The decision comes as global tensions rise between the US and China. Despite this, HSBC insists it's not backing away from helping clients navigate the complex international environment. The bank is streamlining operations and cutting costs under CEO Georges Elhedery.

HSBC Holdings Plc (NYSE: HSBC) has announced that it is winding down its geopolitical risk team, affecting fewer than 10 roles across Asia and Europe. This decision comes as global tensions between the U.S. and China are again flaring, and President Donald Trump's return to power adds fresh uncertainty to global trade flows. Despite this, HSBC insists it is not backing away from helping clients navigate the complex international environment. The bank is streamlining operations and cutting costs under CEO Georges Elhedery [1].

The move to streamline operations is part of a broader cost-cutting effort aimed at improving the bank's financial performance. HSBC's restructuring program, which includes aggressive measures such as staff reductions and the sale of non-core assets, aims to slash £1.5 billion in annual costs by 2025 [2]. The bank anticipates £1.8 billion in restructuring charges over the next two years, but the long-term benefits are expected to boost its return on equity (ROE), a metric that has lagged peers [2].

HSBC's decision to wind down the geopolitical risk team is part of a broader strategy to focus on high-growth markets, particularly in Asia. The bank is prioritizing markets like China, India, and the Gulf Cooperation Council (GCC), where wealth management is a key growth lever. Despite the reduction in the geopolitical risk team, HSBC remains committed to supporting its clients in navigating the complex international environment [1].

The decision to streamline operations and cut costs comes at a time when global tensions are rising. However, HSBC's focus on high-growth markets and digital transformation efforts could differentiate it from regional rivals and position it for future growth. The bank's strategic pivot to Asia and cost discipline create a favorable long-term narrative for investors, despite near-term risks such as regulatory delays and geopolitical headwinds [2].

In conclusion, HSBC's decision to wind down its geopolitical risk team is part of a broader strategy to streamline operations and cut costs. While the move comes at a time of rising global tensions, the bank remains committed to supporting its clients and positioning itself for future growth in high-growth markets. Investors should monitor HSBC's progress on cost savings and net interest income (NIM) trends in the coming quarters.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-18/hsbc-sells-french-portfolio-to-former-french-banking-unit-ccf
[2] https://www.ainvest.com/news/hsbc-doubles-amd-price-target-200-fresh-momentum-2507/
[3] https://www.ainvest.com/news/hsbc-holdings-navigating-restructuring-regional-shifts-personal-banking-2507/
[4] https://finance.yahoo.com/news/hsbc-pulls-plug-geopolitical-risk-140705089.html