HSBC mulls over restructuring Singapore units to simplify operations
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HSBC has been on a major restructuring drive over the past two years, since Georges Elhedery took over as chief executive in September 2024.
PHOTO: LIANHE ZAOBAO
- HSBC plans to restructure its Singapore operations by combining wholesale, retail, and private banking into one entity to simplify its business structure.
- The bank continues its major global restructuring under CEO Georges Elhedery, including selling its Singapore insurance unit for US$2.1 billion.
- Despite Singapore's smaller profits and staff compared to Hong Kong, HSBC invests in AI and seeks to reduce risks amid geopolitical concerns over its Hong Kong exposure.
AI generated
HSBC Holdings is planning to overhaul its Singapore operations by combining its major banking services under one entity to streamline the structure, according to sources familiar with the matter.
The move would essentially bring HSBC’s local wholesale, retail and private banking operations under one roof, said the sources, asking not to be identified discussing a private matter.
HSBC has been on a major restructuring drive over the past two years, since Georges Elhedery took over as chief executive in September 2024. He has shut down, merged and sold several businesses in an effort to simplify the bank’s business and reduce costs.
In July, the lender agreed to sell its Singapore insurance unit for US$2.1 billion (S$2.67 billion).
“We continue to review our organisational structure for opportunities for simplification,” an HSBC spokesperson said. “All of our Asia-Pacific banking entities remain under the ownership, management and resolution structure of the Hongkong and Shanghai Banking Corporation Ltd, and there is no plan to make any changes to this.”
In May 2016, HSBC locally incorporated its retail banking and wealth management business in Singapore under HSBC Bank (Singapore). It also operates a separate branch through The Hongkong and Shanghai Banking Corp, its main Asia entity.
It is continuing to invest in the city state, with plans to establish a global AI centre and hire over 100 artificial intelligence specialists.
The move comes amid concern over HSBC’s concentration in Hong Kong as geopolitical risks escalate. Among global banks, HSBC has the largest exposure to Hong Kong. The British lender expanded its footprint in the city in 2026 after completing a US$14 billion privatisation of Hang Seng Bank.
The Chinese territory is its biggest source of profits. HSBC even serves as one of the city’s three commercial note-issuing lenders.
HSBC’s footprint in Singapore is dwarfed by its Hong Kong business. Singapore generated US$774 million in pre-tax profit in the first half of 2026, compared with Hong Kong’s US$7.8 billion.
The bank employs more than 30,000 staff in Hong Kong, where wholesale lending reached US$144 billion in the first half. In contrast, it has roughly 3,600 employees and US$21.8 billion in wholesale loans in Singapore.
HSBC’s corporate structure moves are not without precedent.
In 2019, rival Standard Chartered consolidated its operations into a locally incorporated subsidiary, creating dual hubs in Singapore and Hong Kong to simplify its network and trim costs. BLOOMBERG
