Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
HSBC Renames Business Sections Amid Speculation of Split
HSBC has recently made the decision to rename its “eastern markets” and “western markets” business sections, just months after their creation. The rebranding comes amidst renewed speculation that the bank may be considering a formal split along east-west lines.
According to sources familiar with the matter, the bank is now referring to the eastern markets business as “Asia and the Middle East”, and the western markets business as “Europe and Americas”. Despite the name changes, the structure of the business remains unchanged.
The creation of the “eastern” and “western” sections was part of a larger overhaul announced by HSBC’s chief executive, Georges Elhedery, in October. The move was aimed at simplifying the bank’s operations by reducing its global footprint from five regions to two.
However, the east-west division sparked rumors that HSBC might be laying the groundwork for a future split. In 2023, top HSBC shareholder Ping An, a Chinese insurance group, urged the bank to spin off its Asian operations, a proposal that was ultimately rejected in a shareholder vote.
Elhedery was quick to dismiss speculations of a potential split, stating that the overhaul was not a precursor to any division. Some staff members also voiced concerns about the “eastern” and “western” labels, particularly in light of rising geopolitical tensions.
HSBC declined to provide further comment on the matter, referring back to Elhedery’s statement in October about streamlining the bank’s governance structures to better serve customers globally.
The “eastern markets” section now encompasses the Asia Pacific region and the Middle East, overseen by David Liao and Surendra Rosha. The “western markets” section includes HSBC’s non-ringfenced UK bank, as well as Europe and the Americas.
In addition to the geographical reorganization, HSBC introduced four new business lines: Hong Kong, the UK, corporate and institutional banking, and international wealth and premier banking. The bank also unveiled plans to save $300 million in 2025 and reduce its annual cost base by $1.5 billion by the end of next year.
As part of the overhaul, HSBC is closing certain parts of its investment banking operation, including mergers and acquisitions advisory work and its equity capital markets business in the west. Elhedery emphasized that the changes aim to strengthen key areas of the bank, such as its UK and Hong Kong units, and streamline its governance structure.
