Although it will carry on offering investment banking in Asia and the Middle East, Elhedery's shake-up ends its long-running, costly attempt to build an investment bank franchise capable of challenging the likes of Barclays, Goldman Sachs and JP Morgan.
Shore Capital analyst Gary Greenwood said that the investment banking arm cuts were 'not a surprise' and that Elhedery was right to take action.
Georges Elhedery, the boss of HSBC, will reportedly kick off more job cuts next week as he reveals his radical overhaul of the bank has saved £1.2billion.
Elhedery took over from Noel Quinn in September and launched a sweeping re-organisation including cuts to its deal making and advisory business in the UK, Europe and America.
Analysts expect the results will show profits for 2024 rose 5.7 per cent to £25.4billion thanks to lower-than-expected bad debts and a strong performance from its personal banking and wealth management arm.
