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HSBC is preparing to detect $ 1.5 billion of annual cost savings from executive georges elhedery’s Riveli Bank.
Europe’s biggest lender will determine the figures for the first time Wednesday, February 19, when Elhededeys presents full year results for investors.
It is expected to report $ 1.5BN in savings from changes after one -time costs, according to two persons acquainted with the issue.
HSBC refused to comment.
ELDEY announced a comprehensive reorganization in October, weeks after receiving the brakes, to reduce duplication and help remove costs from an organization that has long had a reputation as a clumsy bureaucracy.
The chief executive said plans will result in a “simpler, more dynamic and resourceful” organization. Bank shares have increased 30 percent since the notice.
Essential for Elhededey’s plans are changes in the way London -based group is organized. Now it has individual units dedicated to its two essential markets of the United Kingdom and Hong Kong, a unit focused on the Corporate Bank and institutions, and another for international property and banking Premier.
Reorganization has meant the merger of commercial banks and investments, two of the three HSBC divisions in its old structure.
Their combination has enabled ELhedDery to reduce the number of bankers who double in different geography-especially in the old ranks-and much of the strap tightening has so far come from surpluses. He has reduced the number of top managers about half.
On Wednesday HSBC is also preparing to determine the amount of savings expected from ELhedDery’s decision to withdraw from some non-essential markets, a figure that both people placed about $ 1.5BN.
HSBC announced in January that it would withdraw from the main parts of its Banking Business Business in the United Kingdom, Europe and America, which captured many employees in those businesses. He also decided to close its zing payment app only one year after its start.
The bank has acted rapidly to put the ELhedDery plan into action, but is still arguing with what it has to do with its operations in Mexico, people known to discussions.
HSBC has significantly examined the scaling of its business in Mexico, as part of a broader review of its non-elbive retail operations, the Financial Times has previously reported.
The bank has been under pressure to control costs as a period of interest rate increase – which increased bank profits – concludes.
Its net interest margin, a major amount of lending benefit, fell in the third quarter of 2024. Its costs increased 2 percent, partly due to inflation.
The main story of HSBC has remained stubborn high in recent years despite ELHEDERY’s predecessor’s efforts to reduce the bank.
Former chief executive Noel Quinn had previously pledged to reduce the number of full-time jobs to 200,000 by the end of 2023. At the end of September last year, it had 215,180 full-time employees.
