HSBC Plans to Exit M&A and Capital Markets Businesses in Key Markets

HSBC is set to wind down its mergers and acquisitions (M&A) and equity capital markets operations in the U.K., Europe, and the U.S. as part of a broader restructuring of its investment banking division. A company spokesperson confirmed that the bank will retain focused M&A and equity capital market capabilities in Asia and the Middle East but is scaling back in its Western markets.

The decision comes as HSBC, led by CEO Georges Elhedery, works to simplify its business structure and focus on its core strengths. Global investment banking generated $544 million in revenue for the first half of the year, contributing just 6.2% to the bank's net income, according to its latest interim report.

HSBC's shares were down 0.16% in morning trading in London following the announcement.

As part of its ongoing strategic overhaul, HSBC unveiled plans in October to reorganize its operations into four main business units, including a focus on its core Eastern markets—Asia-Pacific and the Middle East—and a separate Western markets division covering the U.K., Europe, and the Americas.

HSBC, which has benefitted from high interest rates alongside other European lenders, is now bracing for challenges as the European Central Bank eases its monetary policies. The bank recently reported a pre-tax profit of $8.5 billion for Q3, surpassing analyst expectations, and announced a $3-billion share buyback.

The bank is also undergoing leadership changes, with Pam Kaur becoming its first female Chief Financial Officer earlier this month. Long-serving Chair Mark Tucker is expected to step down in 2026.

HSBC is scheduled to release its full-year results on February 19.