HSBC is to wind down its investment banking arms in the UK, Europe & US.
The bank is overhauling its dealmaking and corporate advisory activities in the West to accelerate its focus on its more profitable operations in Asia.
Georges Elhedery, who replaced Noel Quinn as CEO of Europe’s biggest lender in September, is executing plans to make £2.4bn of cost savings and reorganise the business into four new divisions split between East and West.
“We will retain more focused M&A and equity capital markets capabilities in Asia and the Middle East, and we will look to wind-down those activities in Europe, the UK and the Americas,” an HSBC spokesperson said.
Earlier Reuters reported that Michael Roberts, CEO of HSBC Bank, had sent a memo to staff outlining the company’s “intention to move to a more competitive, scalable, financing-led model”.
HSBC, which employs around 220,000 people worldwide, will keep its debt capital markets and leveraged acquisition finance operations globally.
HSBC has axed many senior bankers in recent months, while senior executives including global head of wealth and private banking Annabel Spring, group sustainability officer Celine Herweijer, Middle East head Stephen Moss and European heads Colin Bell and Nuno Matos have also left the firm.