HSBC is to restructure its investment bank in an attempt to cut costs and expand its advisory services and equity capital markets.
In a memo sent to employees, the bank giant said it expects to save money and become “more agile and holistic”, the Financial Times reports.
As a result of the restructure, the bank will create a new group called corporate, financials and multinationals banking that brings together a number of investment banking, transaction banking and lending activities.
There will be no direct job cuts as a result of the move, HSBC global banking and markets head Samir Assaf told the FT.
He says: “We have a global savings programme of $1.1bn in our global banking and markets business.
“This programme will contribute tens of millions of this $1.1bn.”
The investment banking unit has already cut staff numbers from 16,500 to 15,500 in the last year with global banking and markets making pre-tax profits of $2.12bn in the first quarter of the year, down a significant 30 per cent year-on-year.
The bank said it will increase share in the equity and advisory business, especially outside of Asia.
Assaf says: “We have progressed in Europe and emerging markets in the last three years. We think that we still have much more to go.”