(Bloomberg) -- HSBC Holdings Plc’s new chief Georges Elhedery emphasized cost discipline at his first town hall in Hong Kong as Europe’s largest lender seeks to keep expenses in check.
His message to staff in the Asia Pacific was to carry on with the lender’s current strategy, and while there’s a focus on cost, it’s more about spending wisely than spending less, according to two people who attended the town hall earlier Tuesday. The chief executive officer spoke in Hong Kong — its most profitable market, where he has been making branch visits and meeting with clients and staff.
HSBC is looking to rein in expenses as central banks around the world have begun to cut interest rates, threatening the margins of big, global lenders. In recent months, the bank has already started to slow hiring and asked bankers’ to be more judicious about their travel and entertainment spending.
In the first major shakeup since he was named chief, the bank last week announced the departure of the head of its wealth unit, chief operating officer and head of human resources.
The lender is also considering plans that could remove layers of middle management as part of a sweeping restructure, Bloomberg reported previously.
The business in Hong Kong, which banks around 5.4 million of the 7.4 million population in the regional financial hub is still HSBC’s jewel in the crown, according to a Citigroup Inc. research note this week. “The outlook for HSBC remains heavily intertwined with the future of Hong Kong,” the analysts said.
“Hong Kong is an incredibly important market for us and Georges was keen to spend his first few days here,” said an HSBC spokesperson, adding he will also meet government officials before returning to the UK.
The Lebanon-born, French-educated banker spent time off learning Mandarin during his 2022 sabbatical and can speak passable Mandarin, making him the first CEO in HSBC’s modern history possessing the key language skill. He told staff that he spends 1.5 hours a week to continue learning the language.
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