HSBC Investors confirms CEOs’ investment bank cuts
Sinead Cruise, Lawrence White, Selena Li
LONDON/HONG KONG (Reuters) – HSBC investors support management attempts to shut down some investment banks despite President Donald Trump’s deregulation agenda fuel wants a boom in capital market activity I’m doing it.
Four shareholders, including two of the largest 20, said last month they decided to merge AX HSBC and make the US and European equity capital markets team AX.
Once a vast giant of over 100 countries, HSBC has slowly and slowly reduced the past decade and has left the low-turn business.
Pressure is on George Elhedery as US tariffs threaten to squeeze the profitable power of major trade finance providers like HSBC. George Elhedery is putting pressure on the Asian economy to transfer group capital with healthy regional trade prospects that may not be vulnerable to the scope of global trade.
“Geopolitics makes life more difficult for many companies that operate globally,” says Alex Potter, director of investment for European equities at HSBC shareholder Abrdn, the top 30 investors. He said.
“Even with multiple purchases over decades, few foreign banks have achieved meaningful market share among US equity investment banks,” he added.
Elhedery will reveal details of his vision for HSBC when he reports full-year results on February 21, including cost reductions from the restructuring.
Unconfirmed media reports have led to these savings going from 1.2 billion to 3 billion pounds ($1.5-3.8 billion).
HSBC declined to comment.
The bank’s London-registered stocks have risen 11.5% since the start of the year, after rising to fifth place in 2024.
Sajeer Ahmed, global equity portfolio manager at HSBC Investor Aegon Asset Management, aims to provide approximately 16% Tumible Equity (Rote) sustainable benefits, with the bosses meticulous analysis of each business. He said he felt he was doing it.
“Many US banks with similar return profiles trade at multiples of books from fairly high prices,” he told Reuters.
For example, HSBC, which has 19.3% memorization in the first nine months of 2024, traded on Friday at a multiple of 1.04.
“The sharp switch from Empire Building to profitability is Elhedaly’s attempt to tackle that valuation over time,” Ahmed said.