Following disappointing results, HSBC made announcements to further restructure the business including through 35,000 job cuts. According to its interim head, the current revamp will be less dependent on assumptions based on the macroeconomic environment.
I believe this plan is predicated on three things we can control, which are costs, simplification of the business, and capital efficiency, rather than being dependent on revenue growth assumptions influenced by the macroeconomic environment,” Quinn said.
Meanwhile, the spotlight continues to shine on the issue of stability at the top as the bank’s appointment of a permanent chief executive remains unconfirmed. HSBC CFO Ewen Stevenson reportedly made a call to staff this week to provide assurance and inspire commitment.
Internally, expectations had built up in the run-up to the strategy update that Quinn will be confirmed as the group CEO, the report said, citing an unnamed source that was on the call. But the way the whole thing is being handled … it has created more confusion about the strategy and whether the bank will stick to it for the next three years even if there is a change at the top.
This is a significant restructuring that is being driven by an interim CEO who may not be the person that delivers it, added another unnamed source that claimed to be a top-20 investor in the bank.
