HSBC is planning to axe parts of its investment banking business in the UK.
In a huge shake-up, the banking giant is preparing to wind up its mergers and acquisitions (M&A) and equity capital markets (ECM) units in the UK, Europe and the US in a bid to ‘simplify’ the business.
Boss Georges Elhedery – in charge since September – is pressing ahead with a major overhaul of the Asia-focused bank including a geographic split between East and West.
A HSBC spokesman yesterday said the bank will ‘retain more focused M&A and ECM markets in Asia and the Middle East’.
The spokesman did not disclose how many jobs would be affected or when the changes would take place.
Shore Capital analyst Gary Greenwood said: ‘At the end of the day, these are expensive businesses to run and if you are not winning the business and generating the fees then it’s easy to lose money.’
Cuts: HSBC boss Georges Elhedery (pictured) is pressing ahead with an overhaul of the Asia-focused bank including a geographic split between East and West
Last year, Elhedery unveiled proposals to divide the lender into four units amid growing tensions between China and the West.
Santander’s chairman in the UK is quitting amid mounting speculation over the bank’s future in Britain.
William Vereker will step down this year. The announcement came after Ana Botin, chairman of the entire Santander group, last week denied reports the bank was looking to quit the UK.
But Vereker’s exit will fuel speculation over the future of the Spanish bank in Britain.
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