HSBC is considering restructuring its Singapore operations by bringing its major banking businesses under a single entity as part of efforts to simplify the lender’s corporate structure and reduce costs, according to people familiar with the matter.
The proposed changes could bring HSBC’s wholesale, retail and private banking operations in Singapore under one entity, streamlining a structure that currently includes separately incorporated and branch operations.
The review comes as HSBC continues a major restructuring programme under CEO Georges Elhedery, who took over in September 2024. Since then, the bank has closed, merged and sold businesses as it seeks to simplify its global operations and improve efficiency.
In July, HSBC agreed to sell its Singapore insurance business for US$2.1 billion, adding to a series of portfolio changes under Elhedery’s leadership.
An HSBC spokesperson said the bank was continuing to review its organisational structure for opportunities to simplify its operations. However, the lender said there were no plans to change the ownership, management or resolution structure of its Asia-Pacific banking entities.
HSBC incorporated its Singapore retail banking and wealth management business locally in 2016 under HSBC Bank (Singapore), while also operating a separate branch of The Hongkong and Shanghai Banking Corporation, its main Asia-Pacific banking entity.
The potential restructuring comes as HSBC faces growing scrutiny over its concentration in Hong Kong amid heightened geopolitical risks. Hong Kong remains the bank’s largest source of profits, with HSBC holding significant exposure to the market.
HSBC’s financial performance also highlights the difference between its operations in the two Asian financial hubs. Singapore generated US$774 million in pre-tax profit during the first half of 2026, compared with US$7.8 billion from Hong Kong.
The bank employs more than 30,000 people in Hong Kong, where wholesale lending reached US$144 billion during the first half of the year. In Singapore, HSBC has around 3,600 employees and US$21.8 billion in wholesale loans.
Despite the proposed organisational review, HSBC continues to invest in Singapore. The bank plans to establish a global artificial intelligence centre in the city-state and hire more than 100 AI specialists.
The potential consolidation would not be unprecedented among global banks operating in Singapore. Standard Chartered consolidated its local operations into a locally incorporated subsidiary in 2019 as part of efforts to simplify its network and reduce costs.