LONDON (dpa-AFX) - HSBC Holdings plc (HSBC) is considering merging the company's commercial and investment banking divisions as part of Chief Georges Elhedery's cost-reduction strategy, according to a report by Bloomberg.
The potential merger would create HSBC's largest division, employing nearly 92,000 workers and generating total annual revenues of about $40 billion, the report added.
The move aligns with the newly appointed chief's strategy to cut costs and eliminate overlap between the divisions. Also, he is reportedly looking to reduce layers of middle management within the bank.
'Our strategy is working, and I'm committed to continuing to build on it,' Elhedery emphasized in a memo to staff, Reuters reports.
The memo also highlighted that Elhedery intends to grow revenue on a 'sustainable trajectory', while upholding 'high ethical standards, prudent risk management and strong cost discipline'.
Currently, HSBC's stock is trading at $43.74, up 2.03 percent on the New York Stock Exchange.
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