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HSBC Holdings (NYSE:HSBC) is mulling combining its commercial and investment bank arms as part of an effort to consolidate redundant roles throughout the firm and reduce expenses, according to a Monday media report.
The move would merge HSBC’s (HSBC) global banking and markets division with its commercial banking unit, Bloomberg reported, citing people familiar with the matter. The combined business would become the lender’s largest revenue stream, raking in some $40B per year.
(HSBC) gained 1.9% in Monday morning trading in the U.S.
No definitive decisions have been reached, and the specifics of any potential restructuring remain subject to changes, the people said, Bloomberg reported.
HSBC’s (HSBC) new CEO Georges Elhedery reportedly weighed a plan last month to cut layers of middle management at Europe’s largest bank, a move aimed at streamlining operations.
The focus on the bank’s organizational structure follows earlier efforts to offload chunks of business that it didn’t consider core. In March 2024, HSBC (HSBC) completed the sale of its Canadian bank to Royal Bank of Canada (RY) and the sale of its French operations to My Money Group in January 2024. Bloomberg reported earlier this month that it’s seeking to offload its businesses in South Africa.
