HSBC to Award Little or No Bonuses to Some Bankers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy HSBC?
HSBC is preparing to award little or no bonuses to some bankers and push underperforming staff to exit after payouts, including at senior levels, Bloomberg's Ambereen Choudhury, Harry Wilson, and Denise Wee report. The tougher approach reflects CEO Georges Elhedery's effort to align HSBC's pay and performance culture more closely with Wall Street peers.
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Analyst Views on HSBC
About HSBC
HSBC Holdings plc (HSBC) is a banking and financial services company. Its business segments include Hong Kong, UK, Corporate and Institutional Banking (CIB), and International Wealth and Premier Banking (IWPB). Its Hong Kong business comprises retail banking and wealth and commercial banking of HSBC Hong Kong and Hang Seng Bank. Its UK business comprises UK retail banking and wealth (including first direct and M&S Bank) and UK commercial banking, including HSBC Innovation Bank. The CIB segment is formed from the integration of its commercial banking business (outside the UK and Hong Kong) with its global banking and markets business. The IWPB segment comprises premier banking outside of Hong Kong and the UK, its global private bank, and its asset management, insurance and investment distribution businesses. Its customers worldwide through a network covering 58 countries and territories. Its customers range from individual savers and investors to companies, governments and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Synergy Potential: Coombs noted that the potential for revenue synergy is expected to improve following HSBC's acquisition of minority stakes in Hang Seng Bank, which closed in January, highlighting the company's strategic direction in resource integration and operational efficiency enhancement.
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- Regulatory Adaptation: The smooth approval of this transaction demonstrates HSBC's ability to effectively navigate complex regulatory environments, further solidifying its market position in the Asia-Pacific region.
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- Surge in AI Demand: HSBC analyst Frank Lee is optimistic about Intel's prospects, forecasting a return to growth in server-related sales driven by an impending boom in artificial intelligence, which is expected to exceed Wall Street's projections of 4% to 6% growth by 2026.
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