HSBC mulls restructuring Singapore units to simplify operations
This will bring the lender’s local wholesale, retail and private banking operations under one roof
HSBC is contemplating a restructuring of its Singapore units to simplify operations, according to sources familiar with the matter. The bank aims to consolidate its wholesale, retail, and private banking operations under a single entity to streamline its structure, the sources said, declining to be identified due to the private nature of the discussion. This move would effectively amalgamate HSBC's local operations in wholesale, retail, and private banking under one roof, a development disclosed by the bank's spokesperson.
HSBC has been engaged in a significant restructuring drive since Georges Elhedery assumed the role of chief executive officer in September 2024. The CEO has undertaken the shutdown, merger, and sale of several businesses to simplify the bank's operations and curb costs. In July, HSBC agreed to sell its Singapore insurance unit for a sum of US$2.1 billion.
The spokesperson reiterated that all of the bank's Asia-Pacific banking entities remain under the ownership, management, and resolution structure of HSBC, with no plans to alter this arrangement.
Established in Singapore in 2016, HSBC Bank (Singapore) operates the retail banking and wealth management business locally. The bank also maintains a separate branch through The Hongkong and Shanghai Banking Corporation, its main entity in the region. HSBC continues to invest in Singapore, with plans to set up a global artificial intelligence center and hire over 100 AI specialists.
The move reflects HSBC's concern over its concentration in Hong Kong amid escalating geopolitical risks. With the largest exposure to Hong Kong among global banks, HSBC has capitalized on the city's substantial profits, which primarily stem from its operations in Hong Kong.
While HSBC's footprint in Singapore pales in comparison to its Hong Kong operations, the bank's revenue in Singapore reached US$774 million in the first half of 2026, as opposed to US$7.8 billion from Hong Kong. HSBC employs more than 30,000 staff in Hong Kong, where wholesale lending totaled US$144 billion in the first half of the year.
In contrast, the bank has approximately 3,600 employees in Singapore and manages wholesale loans amounting to US$21.8 billion. Such structural shifts in HSBC's corporate landscape are not unprecedented, as rival Standard Chartered consolidated its operations into a locally incorporated subsidiary in 2019, creating dual hubs in Singapore and Hong Kong to simplify its network and reduce costs.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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