{"id":104444,"date":"2025-02-19T11:00:00","date_gmt":"2025-02-19T11:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=104444"},"modified":"2025-02-19T09:41:48","modified_gmt":"2025-02-19T09:41:48","slug":"hsbc-slashes-costs-as-profits-32-3-billion","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/hsbc-slashes-costs-as-profits-32-3-billion\/","title":{"rendered":"HSBC Slashes Costs as Profits Surge to $32.3 Billion \u2013 What It Means for Customers"},"content":{"rendered":"\n

HSBC, the UK\u2019s largest bank, has announced a pre-tax profit of $32.3 billion <\/strong>(\u00a325.2 billion) for 2024, up from $30.3 billion (\u00a324.1 billion) in 2023, according to its latest financial results. Alongside this growth, the bank has committed to reducing costs by $1.5 billion (\u00a31.2 billion) by the end of 2026<\/strong> as part of a strategic overhaul.<\/p>\n\n\n\n

The cost-cutting measures come as HSBC undergoes a major restructuring under the leadership of Georges Elhedery<\/strong>, who took over as chief executive in 2024. <\/p>\n\n\n\n

The bank aims to streamline its global operations, prioritise efficiency, and invest in areas where it holds a competitive edge. However, the restructuring will also involve $1.8 billion (\u00a31.4 billion) in severance and upfront costs<\/strong> over the next two years.<\/p>\n\n\n\n

HSBC reports profit growth amid restructuring<\/strong><\/h2>\n\n\n\n

HSBC<\/strong>\u2019s <\/strong>latest financial results highlight strong performance, with profit <\/strong>after tax <\/a>reaching $25 billion (\u00a319.8 billion) in 2024. Pre-tax profit for the fourth quarter alone was $2.3 billion (\u00a31.8 billion), <\/strong>up by $1.3 billion (\u00a31 billion) compared to the same period in 2023, <\/strong>according to the bank\u2019s annual report.<\/p>\n\n\n\n

Revenue remained steady at $65.9 billion <\/strong>(\u00a352.2 billion) for the year, while operating expenses rose by $1 billion<\/strong> (\u00a30.8 billion). HSBC attributed the increase in expenses to higher wage costs and spending on technology, reflecting its investment in digital banking services.<\/p>\n\n\n\n

Chief executive Georges Elhedery<\/a><\/strong> described the performance as a solid foundation for future growth, stating: “Our strong 2024 performance provides firm financial foundations upon which to build for the future, as we prioritise delivering sustainable strategic growth <\/strong>and the best outcomes for our customers.”<\/em><\/p>\n\n\n\n

Cost-cutting strategy and global restructuring<\/strong><\/h2>\n\n\n\n

HSBC’s cost-cutting plan is aimed at making the bank <\/a>“simpler, more agile, and focused”<\/strong>, according to Elhedery. The strategy includes redeploying $1.5 billion (\u00a31.2 billion) from non-strategic areas to more profitable divisions while implementing measures to streamline operations.<\/p>\n\n\n\n

To achieve its savings target, HSBC has outlined $0.3 billion (\u00a30.24 billion) in cost reductions for 2025, with the remainder of the $1.5 billion <\/strong>(\u00a31.2 billion) in savings expected by 2026. The restructuring will also result in job cuts<\/strong>, though the bank has not specified the number of roles affected.<\/p>\n\n\n\n

Elhedery has introduced a “smaller, core team”<\/strong> of executives with a focus on managing costs and capital more efficiently. He stated: “We are embedding this approach across the organisation to ensure we are continually focused on these two important principles.”<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

HSBC\u2019s latest financial results reveal a sharp rise in profits, yet the bank is moving ahead with aggressive cost reductions. Under new leadership, a streamlined approach is taking shape, targeting billions in savings. <\/p>\n","protected":false},"author":10,"featured_media":104446,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-104444","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/104444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=104444"}],"version-history":[{"count":4,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/104444\/revisions"}],"predecessor-version":[{"id":104454,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/104444\/revisions\/104454"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/104446"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=104444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=104444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=104444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}