HSBC
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HSBC “reviews” its investment banking business

Bank Winds Down M&A and ECM Operations in Europe, UK, and Americas

HSBC, Europe’s largest bank, has announced a major restructuring of its investment banking operations as part of CEO Georges Elhedery’s broader strategy to streamline and refocus the organization. The London-based bank will wind down its mergers and acquisitions (M&A), advisory and equity capital market (ECM) services in the UK, Europe, and the U.S., while retaining more focused capabilities in Asia and the Middle East.

The company told staff in a memo seen by Reuters on Tuesday morning that its “intention is to move to a more competitive, scalable, financing-led model”. The bank has not disclosed the exact number of employees affected. The move follows other recent changes, including the closure of HSBC’s global payments app, Zing, which launched in early 2024. The closure is expected to impact up to 400 roles, including contracted support staff.

The bank will maintain its other operations in western markets. “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 told City AM. “As part of our ongoing efforts to simplify HSBC and increase leadership in our areas of strength, we are finalising a review of our Investment Banking business,” the spokesperson added.

Some analysts were surprised by the timing of HSBC’s decision, given capital markets activity is expected to grow in the near term, fuelled by expectations of interest rate cuts and pro-growth policymaking across the West in the wake of U.S. President Donald Trump’s return to power.

HSBC’s investment banking operations contributed 6% of the bank’s total revenues in the latest half-year results. The bank’s shares dropped 0.3% to 822.20 pence each on Tuesday morning in London.


Year founded: 1865 Headquarters: London, UK Employees: 221,000 Revenue: $51.73 billion (2024)