HSBC Holdings plc is considering merging its wholesale, retail and private banking businesses in Singapore into one unified entity as part of a broader effort to simplify its structure, according to sources close to the matter who spoke on condition of anonymity.
This potential restructuring is part of a larger transformation effort led by CEO Georges Elhedery, who has been streamlining the bank’s operations, closing or divesting several units, and cutting costs since taking the helm in September 2024. Earlier this year, HSBC sold its Singapore insurance arm for US$2.1 billion (RM8.46 billion).
Responding to the reports, an HSBC spokesperson said the bank regularly evaluates its organizational setup for ways to simplify, while stressing that all Asia-Pacific entities remain under the oversight of The Hongkong and Shanghai Banking Corporation, with no changes planned to that arrangement.
Currently, HSBC’s Singapore retail and wealth management business operates as a separately incorporated entity, HSBC Bank (Singapore) Ltd, established in 2016, alongside a separate branch under its main Asia arm, The Hongkong and Shanghai Banking Corp. Despite the potential restructuring, HSBC continues to expand its presence in Singapore, including plans for a new global AI hub and the hiring of over 100 AI specialists.
The possible shake-up comes as HSBC faces scrutiny over its heavy reliance on Hong Kong, where it holds the largest exposure among global banks amid rising geopolitical tension. The bank recently expanded further in the territory through its US$14 billion buyout of Hang Seng Bank Ltd, reinforcing Hong Kong’s role as its top profit source and one of the city’s three banknote-issuing institutions.
By comparison, HSBC’s Singapore business remains far smaller. In the first half of 2026, Singapore contributed US$774 million in pretax profit, against Hong Kong’s US$7.8 billion. Hong Kong also employs over 30,000 HSBC staff with US$144 billion in wholesale loans, compared to roughly 3,600 employees and US$21.8 billion in wholesale lending in Singapore.
Such restructuring wouldn’t be unprecedented — in 2019, Standard Chartered plc took a similar step, consolidating into a locally incorporated subsidiary and establishing twin hubs in Singapore and Hong Kong to cut costs and simplify operations.
