HSBC mulls restructuring Singapore units to simplify operations

HSBC Holdings is considering reorganizing its Singapore operations by merging its major banking services under a single entity, according to sources familiar with the matter. This restructuring would consolidate the firm's local wholesale, retail, and private banking operations into one structure, the sources stated, declining to be identified.

The move is part of a broader restructuring initiative that HSBC has undertaken over the past two years, following the appointment of Georges Elhedery as CEO in September 2024. The CEO has previously undertaken closures, mergers, and sales of various businesses to streamline the bank's operations and cut costs. In July, HSBC sold its Singapore insurance unit for $2.1 billion.

HSBC's spokesperson confirmed that the bank remains committed to reviewing its organizational structure for opportunities to simplify operations. However, they emphasized that all Asia-Pacific banking entities continue to be owned, managed, and resolved under the Hongkong and Shanghai Banking Corporation Ltd structure, with no plans to alter this arrangement.

Founded in 2016, HSBC has been operating its retail banking and wealth management business in Singapore under HSBC Bank (Singapore). The lender also maintains a separate branch via The Hongkong and Shanghai Banking Corp., the bank's primary entity in the Asia-Pacific region. HSBC continues to invest in Singapore, with plans to establish a global AI center and hire more than 100 artificial intelligence specialists.

The restructuring comes as HSBC faces increasing geopolitical risks, particularly in Hong Kong, where the bank has the largest concentration of its operations among global banks. HSBC's exposure to Hong Kong is substantial, with the territory representing the bank's largest source of profits. In 2026, HSBC completed a $14 billion privatization of Hang Seng Bank, expanding its footprint in the city-state.

While HSBC's operations in Singapore are significantly smaller than its Hong Kong business, the bank employs over 30,000 staff in Singapore, with wholesale lending of $21.8 billion in the first half of 2026. In contrast, Hong Kong generated $7.8 billion in pre-tax profit during the same period. The restructuring of its Singapore operations is not unprecedented, as rival Standard Chartered consolidated its operations in 2019, creating dual hubs in Singapore and Hong Kong to simplify its network and reduce costs.