HSBC Holdings Plc is considering a major restructuring of its Singapore operations, with plans to bring several core banking services under a single entity to simplify its organizational structure, amid a global business overhaul that has been underway for the past two years. The plan under consideration would consolidate HSBC's Wholesale Banking, Retail Banking, and Private Banking businesses in Singapore under one unit, compared with the current multi-structure setup. This move is part of HSBC's broader restructuring strategy since Georges Elhedery took over as chief executive officer in September 2024. HSBC has been gradually closing, merging, and selling various businesses to make its organizational structure more agile and reduce costs. Most recently, in July, HSBC agreed to sell its insurance business in Singapore for $2.1 billion. An HSBC spokesperson said the bank continues to review its organizational structure to identify opportunities to reduce complexity, but confirmed that all of HSBC's banking entities in the Asia-Pacific region will remain under the ownership, management, and resolution structure of The Hongkong and Shanghai Banking Corporation Ltd., with no plans to change that structure. HSBC established HSBC Bank (Singapore) Ltd. as a local entity in May 2016 to conduct retail banking and wealth management in Singapore, while also operating a separate branch through The Hongkong and Shanghai Banking Corporation, HSBC's main entity in Asia. Despite the potential restructuring, the bank continues to invest in Singapore, with plans to set up a Global AI Center and hire more than 100 artificial intelligence specialists, reflecting that Singapore remains one of HSBC's strategic markets in the region. The restructuring consideration comes amid concerns about HSBC's high concentration of business and revenue in Hong Kong, as geopolitical risks in the region rise. Among global banks, HSBC is the most exposed to Hong Kong, which remains its largest source of profit. HSBC has also expanded its business in Hong Kong this year, following the completion of its $14 billion deal to take Hang Seng Bank private. HSBC is also one of three commercial banks authorized to issue banknotes in Hong Kong. The earnings figures highlight the stark contrast between the two markets: in the first half of 2026, HSBC's Singapore business generated a pretax profit of $774 million, compared with Hong Kong's pretax profit of $7.8 billion, roughly ten times higher. In terms of headcount, HSBC has more than 30,000 employees in Hong Kong and wholesale banking loans of about $144 billion in the first half, while Singapore has about 3,600 employees and wholesale banking loans of $21.8 billion. Consolidating business structures in Singapore is not a new approach for global banks. In 2019, competitor Standard Chartered consolidated its operations under a locally incorporated subsidiary in Singapore to create a dual-hub structure between Singapore and Hong Kong, while simplifying its network and controlling costs. For HSBC, the restructuring plan under consideration is another part of its global strategy to simplify and cut costs, while also coming at a time when the bank is continuing to invest in AI in Singapore and must manage the risks of relying on Hong Kong, which remains the group's main profit base.
HSBC Holdings PLCHSBC is considering consolidating Singapore businesses to reduce complexity, part of a broader restructuring; impact unclear as it may cut costs but also involves significant changes.
Standard Chartered PLC
