HSBC says it's halfway through reshaping its global operations - CEO
Assalamu alaykum - HSBC’s group CEO said the bank is about halfway through a programme of exits and restructuring of its global business, and is placing big hopes on growing its wealth management services in the Middle East and Asia to drive future growth.
Georges Elhedery, who became CEO last September, told reporters on the sidelines of an investment forum in Riyadh that the lender has announced 11 exits from non-core activities so far. He described those moves as part of a journey to redeploy capital into markets and businesses with stronger growth potential, and said the bank is roughly halfway through that process.
HSBC is aiming to free up about $1.5bn of investment to reallocate to priority areas, with a large share expected to support its expanding wealth offering from the UAE. Mr Elhedery stressed that the 11 exits already announced represent about half of the target amount to be freed, not necessarily half the number of transactions that will take place.
As part of its global reshuffle launched last year, the bank is winding down some operations in Europe and the Americas - including parts of its M&A and equities activities - and carrying out strategic reviews of retail businesses in several countries across Asia and the Middle East. Last week it announced a review of Egyptian retail banking, saying wholesale operations there are not included and that it would consider all options.
Mr Elhedery said the bank wants to move quickly but could not give a firm timetable for completing certain sales. HSBC also reported a 14% fall in third-quarter earnings after a legacy provision related to a past fraud case, although its wealth business grew during the period.
He reiterated the bank’s strong commitment to Hong Kong and the UK as key home markets, and said HSBC has doubled down on Asia and the Middle East while some other institutions have retreated. The broader Middle East remains extremely important to HSBC’s global growth plans, he said, calling the region economically resilient and full of opportunity.
Saudi Arabia and the UAE were singled out as key regional growth drivers. HSBC plans continued investment in technology and local talent, and Mr Elhedery said the bank has the appetite and ambition to grow faster in the coming five years.
On geopolitical tensions, he said HSBC never changed its risk appetite for the region despite recent conflicts, and the bank has maintained confidence in the long-term potential of markets like the Kingdom and the UAE. For countries under sanctions or with complex regimes, such as Syria, the bank continues to monitor developments before deciding on any future presence.
Wealth management is central to HSBC’s regional strategy. The bank opened a dedicated wealth centre for affluent clients in Dubai as part of efforts to capture a larger share of the fast-growing wealth market in the Emirates and across the Middle East. Mr Elhedery said the investment in the UAE wealth business is one of the biggest the bank has made in two decades and described it as transformational rather than incremental.
When asked about regulatory inquiries elsewhere, he declined to comment on specifics but said such matters do not change the broader growth picture. He also described global policy shifts and market volatility as realities banks must help customers navigate, and argued that agility creates opportunity for institutions that adapt.
Overall, HSBC’s CEO expressed optimism about the Middle East’s growth prospects through 2030 and beyond, and highlighted the bank’s substantial local presence and market position as reasons for confidence in its ability to capture future opportunities.
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