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HSBC Holdings Plc will incur $1.8 billion in costs over the next two years as part of a global restructuring led by CEO Georges Elhedery, who aims to simplify operations and focus on core strengths. The bank reported a fourth-quarter pretax profit of $2.3 billion and plans to cut expenses by $1.5 billion annually. Significant changes include winding down investment banking operations in Europe and the Americas, creating a new global commercial banking unit, and further asset sales.
HSBC aims to achieve cost savings of $1.5 billion by the end of 2026, following a pre-tax profit increase to $32.3 billion for 2024. Under CEO Georges Elhedery, the bank plans to streamline operations, incurring $1.8 billion in upfront costs while reallocating funds to enhance competitive advantages.
HSBC Holdings PLC reported a 6.6% increase in annual profit to $32.3 billion for 2024, driven by strong wealth management and trading, despite a $3.1 billion decline in net interest income. The bank announced a $2 billion share buyback, totaling $9 billion for the year, and reaffirmed its mid-teens return on tangible equity target for 2025-2027. Operating expenses rose 3% to $33 billion, influenced by technology investments and inflation.
HSBC Holdings PLC reported a 6.6% increase in annual profit to $32.3 billion for 2024, driven by strong wealth management and trading, despite a $3.1 billion decline in net interest income. The bank announced a $2 billion share buyback, totaling $9 billion for the year, and declared a fourth interim dividend of $0.36 per share. CEO Georges Elhedery emphasized ongoing cost restructuring and disciplined capital management, targeting a mid-teens return on tangible equity for 2025-2027.
HSBC aims to save $300 million this year and cut $1.5 billion from its cost base by the end of next year, following a restructuring plan that includes significant operational changes and a reduction in senior banking roles. The bank reported a pre-tax profit of $2.3 billion for the fourth quarter, contributing to a full-year profit of $32.3 billion, surpassing analysts' expectations. Despite rising costs and a decline in net interest margin, HSBC plans to redeploy funds from non-strategic activities to enhance its competitive advantage.
HSBC Holdings Plc's CEO Georges Elhedery will receive a total compensation of £5.4 million ($6.8 million), which includes a base salary of £2.47 million and a variable component of £2.89 million. This adjustment follows new UK regulations allowing a higher proportion of pay to come from bonuses.
HSBC Holdings Plc's CEO Georges Elhedery will receive a total compensation of £5.4 million ($6.8 million), which includes a base salary of £2.47 million and a variable component of £2.89 million. This adjustment follows new UK regulations allowing a higher proportion of pay to come from bonuses.
HSBC Holdings Plc anticipates $1.8 billion in costs over the next two years as part of a global restructuring led by CEO Georges Elhedery, who aims to simplify operations and enhance focus on core strengths. The bank reported a fourth-quarter pretax profit of $2.3 billion and plans to cut expenses by $1.5 billion annually, alongside a $2 billion share buyback. Significant changes include winding down investment banking operations in Europe, the UK, and Americas, and a strategic review of various business units.
HSBC shares surged to a 20-year high of 894.70 ahead of its annual results, marking the highest price since 2001. Analysts anticipate earnings of £25.2bn for 2024, while job cuts in the investment banking division are expected to be announced this week as part of a re-organization plan aimed at saving £1.2bn.
HSBC Holdings is set to announce $1.5 billion in annual cost savings as part of a major reorganization led by new CEO Georges Elhedery, aimed at reducing inefficiencies. The bank's stock has risen approximately 30% since Elhedery's appointment in September 2024, and over 40% in the past year. Key changes include a more focused structure with separate units for the UK and Hong Kong, and the merging of commercial and investment banking operations, alongside significant cuts to its investment banking business outside Asia and the Middle East.
Georges Elhedery
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