Investment Banking

HSBC books $200m in severance costs after shuttering some investment banking teams

The bank beat analyst expectations with $9.5bn in pre-tax profit

Georges Elhedery, chief executive HSBC, has kicked off a radical overhaul of its business
Georges Elhedery, chief executive HSBC, has kicked off a radical overhaul of its business Photo: Lam Yik/Getty Images

HSBC booked around $200m in severance costs for employees as it rolled out a plan to retreat from some investment banking functions.

The UK lender said that it shelled out $100m during the first three months of the year and double this since it embarked on an overhaul of its business last year. It has earmarked around $1.8bn in upfront expenses related to severance for employees over the next two years.

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