HSBC Holdings PLC (HSBC) (GB:HSBA) is reportedly poised to save $1.5 billion as CEO Georges Elhedery accelerates his bold restructuring efforts. As reported by the Financial Times, the bank is set to unveil $1.5 billion in savings from its transformative restructuring, after accounting for one-time expenses. The announcement will come alongside its 2024 results, set for release on February 19.
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HSBC’s New Era Under Fresh Leadership
HSBC Holdings, the largest bank in Europe by assets, is undergoing a major reorganization aimed at cutting costs and enhancing returns. The bank’s CEO, Georges Elhedery, who took the helm in September 2024, is reshaping the bank’s operations in the West to drive returns. Additionally, the bank is intensifying its focus on Asia, the primary source of its profits.
Through its restructuring, Elhedery aims to build a more agile and streamlined organization. This approach has fueled positive market sentiment and bolstered confidence in the company’s financial health and prospects. Consequently, investor optimism is reflected in HSBC’s stock performance on the NYSE, which has gained 25% since the restructuring announcement in October 2024. Meanwhile, its shares listed in Hong Kong and London have surged around 30% over the past six months.
HSBC Eyes Another Round of Job Cuts
In other news, Bloomberg reported that HSBC is initiating another round of job cuts at its investment bank. The cuts will begin in Asia but are expected to affect staff globally. While the exact number of impacted employees remains unclear, layoffs are set to start as early as Monday. Some reductions are already underway in the firm’s markets division, with broader cuts across the investment bank to follow.
Is HSBC a Good Share to Buy?
According to TipRanks consensus, HSBA stock has received a Moderate Buy rating based on five Buy and five Hold recommendations. The HSBC share price target is 866.78p, which is 1% below the current trading level.
