HSBC to restructure its global banking division

HSBC is to restructure its investment banking division in an effort to make the business more “agile and holistic” and save money according to a memo seen by Reuters.

The bank will create a new group called Corporate, Financials and Multinationals Banking that will integrate the transaction banking, investment banking and lending.

“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,” Samir Assaf, HSBC’s global banking and markets chief executive told the Financial Times.

Global banking and markets made $2.12bn in pre-tax profits in the first quarter.

Assaf told the FT that no direct jobs will be lost. But IFR, a Thomson Reuters publication, reported last week that John Crompton, global head of corporate finance and Florian Fautz, global head of M&A, left HSBC.

The FT also reported that about 15 HSBC investment bankers were let go last week. Last year there were between 16,500 to 15,000 staff cuts in HSBC investment banking division.

The memo from global banking co-heads Robin Phillips and Matthew Westerman, said the new banking unit will be managed by Philippe Henry. Westerman joined HSBC in February from Goldman Sachs.

Phillips and Westerman wrote in the memo, which was confirmed by HSBC. "Our new structure will ...improve returns for our shareholders by improving our profitability and generating efficiencies."