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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.

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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.

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Electric Vehicle Subsidies in Cyprus: Urgent Calls for Government Action

by News Editor

May 9, 2025

The Motor Vehicle Importers and Electric Vehicle Association (Semio) has urgently called upon the Transport Ministry for immediate action concerning the ongoing hurdles with electric vehicle (EV) subsidies in Cyprus.

Semio expresses its concern, warning that any further delays could exacerbate financial strain on its members and heighten consumer dissatisfaction. A formal meeting with the Transport Minister is on the agenda to clarify the government’s position on the subsidy program.

Uncertainties and Impacts

The sudden stop of the EV grant scheme has stirred worry among car importers and potential buyers, leaving stockpiles of electric vehicles in limbo. This unexpected pause in government-backed support has echoed across the industry, with numerous consumer complaints surfacing.

Amid these events, there’s also the broader backdrop of the Cyprus government’s decision to reallocate funds within the national Recovery and Resilience Plan (RRP), aiming to stay aligned with EU financing requirements.

A Call for Dialogue

Despite the ministry’s assurances of pursuing additional funding and maintaining alignment with national energy objectives, Semio criticizes the lack of communication and urges consultation before implementing changes.

On a related note, Cyprus faces challenges in achieving its ambitious EU-mandated goal of registering 80,000 electric vehicles by 2030. The road ahead appears daunting unless a cohesive strategy is adopted.