HSBC Job Cuts Reach Asia
In this article (5)
HSBC’s cost-saving drive is reportedly set to accelerate even in its most profitable markets in Asia following the departure of its global head of equities. Hossein Zaimi is leaving HSBC, according to a report citing two unnamed sources, after joining the bank more than 16 years ago. Zaimi also took on the additional role of co-head of securities financing in March shortly after HSBC revealed plans for its investment bank overhaul.
Adrian Lewis, EMEA head of equity capital markets (ECM), has also left to pursue opportunities outside of the industry, the report added. Lewis will be succeeded by Andrew Robinson, head of EMEA equity syndicate, reporting to Ed Sankey who was named global head of ECM in June 2019.
While the lion’s share of cost cuts reside in Europe, the report noted that Asia – the most profitable region for HSBC – will not be immune to restructuring. Following Zaimi’s departure, more exits are expected in the region in the coming weeks.
The bank originally planned to cut 35,000 jobs, $4.5 billion in costs, and $100 billion in risk-weighted assets before postponing the overhaul in March due to the coronavirus pandemic. In June, HSBC reportedly resumed such activities in June and was considering deeper cuts including more job losses or the possible sale of some businesses.
Simultaneously, the bank is also expanding its newly created wealth and personal banking unit – a combination of the whole private client business from retail to ultra-high net worth (UHNW) individuals – with around half of its $4 trillion in assets from Asia.
Since 2017, the bank has hired 800 employees for its affluent and emerging high net worth client businesses – Premier and Jade, respectively – across Hong Kong, Singapore, and mainland China including relationship managers, investment counselors, UHNW solution specialists, and product specialists.
Questions & Answers
Q.Why is HSBC accelerating its cost-saving efforts in Asia, despite it being a profitable region?
Why is HSBC accelerating its cost-saving efforts in Asia, despite it being a profitable region?
The bank is undergoing a broader cost-saving drive, which includes plans to cut 35,000 jobs and $4.5 billion in costs. Even Asia, as its most profitable region, will not be immune to this restructuring effort as it resumes activities after a pandemic-induced pause.
Q.What roles did Hossein Zaimi hold at HSBC before his departure?
What roles did Hossein Zaimi hold at HSBC before his departure?
Hossein Zaimi was the global head of equities at HSBC. Shortly before his departure, he also took on the additional role of co-head of securities financing in March, following the bank's plans for an investment bank overhaul.
Q.What is the new wealth and personal banking unit, and how important is Asia to it?
What is the new wealth and personal banking unit, and how important is Asia to it?
This new unit combines all private client business, from retail to ultra-high net worth individuals. Asia is crucial to this unit, as approximately half of its total $4 trillion in assets originate from the region.
Q.How many employees has HSBC hired for its wealth businesses in Asia since 2017?
How many employees has HSBC hired for its wealth businesses in Asia since 2017?
Since 2017, HSBC has hired 800 employees for its affluent and emerging high net worth client businesses, Premier and Jade. These hires were across Hong Kong, Singapore, and mainland China in various specialist roles.
Reader pulse
What does HSBC's Asian strategy signal?
20,517 votes so far