Sept 9 (Askume) – HSBC (HSBA.L) is considering merging its commercial and investment banking units to eliminate overlapping functions and cut costs at the bank , Bloomberg reported on Monday, citing people familiar with the matter.
The combined entity will become the bank’s largest source of revenue, contributing about $40 billion in annual revenue, the report said.
Sources quoted in the report said no final decisions have been made and the details of any potential restructuring could still change.
HSBC declined to comment on a Askume request.
If successful, it would be the first change under new governor Georges Elhedary , who is working to shift the bank’s strategy from restructuring to growth at a time when interest rates are likely to rise sharply and geopolitical tensions could escalate.
In recent years, HSBC has also cut its presence in Western markets such as the United States, France and Canada, focusing instead on Asia and its expanding markets.
