HSBC Accelerates Cost Savings, Raises Profitability Targets Under Elhedery’s Leadership

HSBC is on track to deliver $1.5 billion in cost savings in the first half of 2026, six months ahead of its initial schedule, as Group Chief Executive Georges Elhedery continues to reshape the global banking giant. The bank has also increased its return on tangible equity (RoTE) target to at least 17% for 2026 and the following two years, up from a previous target in the “mid-teens”.

Elhedery’s Restructuring Efforts

Georges Elhedery, who assumed the role of Group CEO in September 2024, initiated a worldwide restructuring plan upon his appointment. This included the closure of HSBC’s equity capital markets division and mergers & acquisitions (M&A) advisory services in the United States and Europe, as well as strategic exits from select markets. Financial Times reports that Elhedery has pledged to be “ruthless” in elevating HSBC to a top 5 global bank.

Strong Financial Performance

The accelerated cost savings are being realized alongside robust financial results. HSBC reported pre-tax profits of $6.8 billion for the final quarter of 2025, a significant increase from $2.3 billion in the same period the previous year. Revenue also rose substantially, increasing by 42% to $16.4 billion.

Hang Seng Bank Privatization

These results mark the first reporting period for HSBC since the completion of its $14 billion privatization of Hang Seng Bank, a local lender in Hong Kong. The bank anticipates that this deal will generate cost savings and revenue increases of up to $900 million by 2028.

Capital Allocation and Share Buybacks

HSBC’s London-listed shares experienced a 5.5% increase on Wednesday following the announcement of these results. But, the bank has indicated it will pause further share buybacks until its capital ratios improve.

Workforce and Compensation

HSBC’s employee headcount decreased from 221,000 to just over 218,000 between 2024 and 2025. Despite the reduction in staff, total pay and benefits increased from $20.2 billion to $21.5 billion during the same period.

Elhedery’s Vision for HSBC

In a statement released on Wednesday, Elhedery emphasized that 2025 was “a year of decisive action and swift execution, which is reflected in our strong performance.”

About Georges Elhedery

Georges Elhedery, a French national born in Lebanon around 1974, succeeded Noel Quinn as Group CEO of HSBC in September 2024. Prior to this, he served as Group Chief Financial Officer from January 2023 to September 2024. He joined HSBC in 2005 and has held various leadership positions, including Regional Head of Global Markets for the Middle East and North Africa, and CEO for HSBC in the Middle East, North Africa and Türkiye. HSBC states that Elhedery holds degrees in Engineering and Statistics & Economics.