HSBC to exit parts of investment banking business in UK, US and Europe

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HSBC will close the main parts of its investment banking business in the United Kingdom, Europe and the Americas as part of the CEO of Georges ELHEDEY to fix its operations.

The bank said in a memorandum on Tuesday that the largest lender in Europe will close the integration and advisory acquisitions and capital market companies outside Asia and the Middle East.

A person who has knowledge of the decision said. “It was just a very difficult job for building to a level where [HSBC] It has a competitive advantage. They said that continuing to try to “storm” these markets will not be the best use of the bank’s resources.

The person said that HSBC will maintain debt capital markets, financing the summons, financing real assets and financing infrastructure in those markets, as these units work on a larger scale.

It confirms how small the size of investment banking services as part of HSBC works. Globally, investment banking services made up only 6 percent of the total HSBC revenue in the first half of last year, according to the interim report of the bank. Investment banking services for this period decreased by 3 percent from the previous year.

In a statement, the bank said that this step was part of its “ongoing efforts to simplify HSBC and increase leadership in the areas of our strength.” She said that she will keep “more focused” on the capabilities of integration, purchase and stocks in the capital markets in Asia and the Middle East, and will leave companies in the United Kingdom, Europe and the United States “subject to local legal requirements.”

This step, which Bloomberg was told for the first time, comes at a time when Elheedry, who replaced Nawil Quinn as an executive president last year, is overseeing the large -scale restructuring of the bank to divide the bank into “East” and “Western” units.

The repair process also targets costs by reducing the bank’s highly exorbitant class. Annabel Spring, head of banking and specially wealth services at HSBC, as well as the Celine Herweij.

HSBC has benefited greatly from a higher period of interest rates but is preparing for low rates of low rates. The bank is also preparing to bring a new chair with the approaching limit of Mark Taker for nine years.

Last week, the bank said it was closing Zing, the application of payments that it launched last year in an attempt to compete with digital competitors.