HSBC has spent more than $1.0bn on a major restructuring, which saw it close key parts of its investment bank and axe its biggest group of senior bankers since the financial crisis, according to its company filings.

 

Europe’s biggest bank spent $67.5m in severance removing 134 of its most senior employees, dubbed material risk takers last year, as part of the lender’s sweeping reforms. 

 

Material risk takers are deemed capable of substantially affecting the bank’s risk profile. They often concentrate in lenders’ investment banking and trading businesses.

 

A source told the Financial Times the reduction of its material risk taker pool was part of a “broader trend” across the lender and was not confined to the investment bank. The paper reports it is the biggest cull since the 2008 financial crisis.

 

The cuts came after chief executive Georges Elhedery carried out a major overhaul of the lender’s investment banking operations, shutting down its equity capital markets advisory businesses and mergers and acquisitions in the US, UK, and Europe to free up to $1.5bn to invest in its core businesses, where it has “scale and competitive advantage”.

 

It also announced the exit of its businesses in Malta, Sri Lanka retail banking, its UK life insurance business, its German custody and fund administration businesses, its stake in Grupo Financiero Galicia, its French retained portfolio of home and certain other loans, its Uruguay business, its Bangladesh retail banking business, and its Bahrain retail banking unit.

 

The bank stated in its report: “The targeted strategic reviews of our retail businesses in Australia, Indonesia, and Egypt remain underway, on which no decisions have been made. We remain committed to our wholesale banking activities in these markets.

 

“In addition, we commenced a strategic review of HSBC Life Singapore. We completed the privatisation of Hang Seng Bank on 26 January 2026. This transaction will further simplify the Group and deepen our presence in one of our home markets where we are already the market leader. We are committed to serving Hong Kong with two iconic brands.

 

“We intend to retain Hang Seng Bank as a separately licensed bank with its own governance, brand, distinct customer proposition and branch network.  We aim to strengthen both the HSBC and Hang Seng brands by focusing on their competitive advantages, while allowing customers to choose where to bank.”