Investors in HSBC (HSBA.L) are backing management attempts to shutter parts of its investment bank, even as US President Donald Trump’s deregulatory agenda fuels hopes for a boom in capital markets activity. Four shareholders, including two of the 20 largest, said last month’s decision to axe HSBC’s mergers and equity capital markets teams in the […]
HSBC shareholders have expressed support for the bank's restructuring efforts, aimed at enhancing returns by concentrating on core Asian markets. The restructuring involves closing parts of its investment banking operations in the Americas and Europe. Over the past decade, HSBC has been reducing its global footprint by exiting low-return businesses. This strategic shift is driven by pressures from US tariffs and geopolitical challenges, prompting a focus on Asian economies with stronger trading prospects. CEO George Elhedery is expected to detail the restructuring plans during the upcoming earnings report, with the goal of achieving a sustainable return on tangible equity (ROTE) of around 16%, comparable to some US banks, though with a lower stock valuation.
