HSBC cost cuts expose new CEO’s bigger problem
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
By Liam Proud
LONDON, Oct 10 (Reuters Breakingviews) -Georges Elhedery may slash $300 mln of expenses in a plan to combine investment and commercial banking, the FT says. Yet the savings are modest and a new super-division may have downsides. Investors will be more interested in how Elhedery keeps the top line growing as rates fall.
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CONTEXT NEWS
HSBC’s new CEO Georges Elhedery is planning to cut around $300 million of costs by targeting the bank’s senior-management layer, the Financial Times reported on Oct. 10 citing people familiar with the matter.
Elhedery may combine the commercial banking unit with the global banking and markets business, the report said.
Surendra Rosha, who is co-head of Asia, could run a combined commercial banking and global banking division, while current head of markets Patrick George could run the rest of the enlarged division, according to the report.
Editing by Neil Unmack and Streisand Neto
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