HSBC's withdrawal from Britain, part of the investment banking business in the United States and Europe

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HSBC will close its key part of investment banking in the UK, Europe and America. This is part of the CEO Georges Elehedery's major repair plan for its business.

The bank said in a memo on Tuesday that Europe's largest loan party will end its consolidation and acquisition consultation and its stock market in the stock capital market and the stock market in the Middle East.

A person who knows the decision said that the unit “really has no scale.” “Establishing (HSBC) has the level of competitive advantage, which is a very difficult job.” They said that continuing to try “entering” these markets is not the best use of bank resources.

The person said that HSBC will retain its debt capital market, leverage financing, real asset financing and infrastructure financing business because these units are higher because of the size of these markets.

The decision emphasized the small scale of some investment banks of HSBC's business. According to the temporary report of the bank, globally, the investment banking industry accounts for only 6 % of HSBC's total revenue. The income of investment banks during the period decreased by 3 % compared with the same period last year.

The bank said in a statement that this move is part of its continuous efforts to simplify HSBC Bank and improve leadership in the field of strength. ”

It says that this will keep the “more concentrated” mergers and acquisitions of Asia and the Middle East maintained. It added that companies in the UK, Europe and the United States will “comply with local legal requirements.”

“No one knows (this decision is here).. A HSBC banker in the UK said that many people were shocked.

Two people who understand the matter said that when there was no preliminary agreement on the scale of the bonus pool of investment bankers in mid -January, some problems had been raised inside. One of the people said that the banker still blinded the news.

The first report reported by Bloomberg was reported as EleheDery. He replaced Noel Quinn as CEO last year, responsible for supervising extensive reorganization, divided banks into “Oriental” and “East” and ” Western “unit. The business banks of HSBC will merge with its global banks and market business, including investment banking business.

The reorganization also reduces the cost by reducing the expensive senior employee layer of the bank. Annabel Spring, the head of HSBC's global private banks and wealth business, also left.

HSBC has benefited a lot from a high interest rate period, but is preparing for the prospect of interest rates to decline in interest rates. The bank is also ready to bring a new chair with Mark Tucker's nine -year term of office.

Last week, the bank said it was closing the payment application launched last year to compete with digital competitors.

Ivan Levingston's other reports in London