HSBC exiting M&A and capital markets businesses in UK, Europe, U.S.

From CNBC: 2025-01-28 06:51:06

HSBC Bank plc, a British multinational financial organization, is winding down its M&A and equity capital markets businesses in Europe, the U.K., and the U.S. as part of an investment banking overhaul. This move comes as the bank’s global investment banking brought in $544 million in six months, accounting for 6.2% of net income. London-listed shares of HSBC were down 0.16% in response to the news, as HSBC CEO Georges Elhedery leads cost-cutting efforts.

In October, HSBC announced plans for a new geographic setup, consolidating operations into four business units. The bank must now brace for potential losses as the European Central Bank relaxes its monetary policy. HSBC reported a pre-tax profit of $8.5 billion in the third quarter, exceeding analyst expectations, and initiated a $3 billion share buyback. Changes at the top include Pam Kaur stepping in as the first female CFO and long-serving chair Mark Tucker expected to step down in 2026.

Read more: HSBC to exit M&A, capital markets businesses in UK, Europe and U.S.