HSBC cuts more investment bank roles in latest European retreat
HSBC has reportedly given more than two dozen analysts in its investment banking division the chop as the bank’s boss presses on with his sweeping overhaul.
The firm’s cuts primarily focused on Europe, where the lender has continuously signalled a winding down of operations.
The banking juggernaut slashed ten per cent of its work force in France earlier this month and ditched its UK Corporate and Investor Conference – a key event connecting UK business leaders, analysts and investors.
This comes amid a strategic pivot for the lender as it hones focus on Asian operations to drive growth.
A key part of chief executive Georges Elhedery’s restructure strategy included splitting the business into “eastern markets” covering the Asia-pacific and the Middle East and “western” with the Americas and Europe.
HSBC’s latest drawback on Europe comes after the firm booked $34.1bn (£25.7bn) in pre-tax profit for 2024 after a strong performance in its Asian operations.
In his letter to shareholders, Elhedery said: “In the West, the US remained an outperformer, while growth across Europe was disappointing.
“In Asia and the Middle East, there was broadly steady growth.”
Despite this, Steve Major, HSBC’s Dubai-based global head of fixed income research was included in the bank’s latest cull, according to reports from Bloomberg.
HSBC’s investment bankers in firing line
Investment bankers have been a target after Elhedery plotted £1.2bn of cost-cutting by the end of 2026.
The FTSE 100 giant is also plotting to combine its macro strategy across asset classes, including foreign exchange and fixed income.
The lender previously possessed one of the biggest research divisions on Wall Street with more than 330 analysts and associates producing more than 12,000 reports a year.
Morning Wire revealed in February that the bank was to axe a number of UK investment bankers on the same day pencilled in for bonuses.
A spokesperson for HSBC said: “Our Global Research, Equities Sales and Trading businesses are core to Corporate & Institutional Banking, supporting our Global Prime Finance, Wealth and Cash Equities franchises in Asia, the Middle East and Emerging Markets.”