HSBC Ramps Up Cost-Cutting And Asia Focus Under New CEO

by THEFUTURE.TEAM

February 19, 2025

HSBC is doubling down on cost efficiency and shareholder returns as new CEO Georges Elhedery reshapes the banking giant. The London-headquartered lender plans to slash $1.8 billion in costs by the end of 2026 while pushing deeper into its most lucrative market—Asia.

Profits Beat Expectations, But Uncertainty Looms

For 2024, HSBC posted a pre-tax profit of $32.3 billion, surpassing the $31.7 billion average forecast and outpacing last year’s $30.3 billion. Despite falling interest rates, the bank maintained strong earnings, driven by its wealth and personal banking segment, which brought in $12.2 billion in profit—up 5.2% from a year earlier. Its global banking and markets division also saw a nearly 27% increase, reaching $7.1 billion.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Investors welcomed the results, with HSBC’s Hong Kong-listed shares jumping 1.8% to their highest level since 2011, even as broader markets declined.

Aggressive Cost Cuts And Restructuring

Elhedery, who took the helm in September, is wasting no time in reshaping HSBC’s operations. The bank plans to trim $300 million in costs in 2025, followed by another $1.5 billion in cuts by the end of 2026. HSBC’s workforce already shrank by 3% last year, and the CEO is eyeing an 8% reduction in personnel expenses over the next two years.

His strategy also includes a major structural shift, aligning HSBC’s divisions along East-West lines and slashing investment banking teams in Europe and the Americas. The pivot underscores HSBC’s commitment to Asia, where it generates the bulk of its profit—despite ongoing Sino-U.S. tensions.

Shareholder Returns Stay In Focus

Alongside cost-cutting, HSBC is rewarding investors with a $2 billion share buyback, set for completion before its next earnings release. The bank also announced a $0.36 per share fourth interim dividend, bringing total 2024 payouts to $0.87 per share, including a special dividend from its Canada business sale.

Looking Ahead

Despite an uncertain interest rate environment, HSBC is targeting a mid-teens return on tangible equity for 2025-2027. Elhedery remains focused on streamlining operations, optimizing capital allocation, and boosting profitability in key Asian markets.

With bold restructuring moves and a sharp eye on efficiency, HSBC is sending a clear message: it’s in transformation mode—and investors are taking notice.

The Future Forbes Realty Global Properties

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

by THEFUTURE.TEAM

February 17, 2026

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

Breaking news