HSBC $HSBA (+3,61 %) plans to hire 200 new employees for its wealth management business in the UK this year, even though CEO Georges Elhedery has downsized other areas as part of a far-reaching restructuring. The British bank plans to halve its 400-strong team of relationship managers and wealth managers by the end of the year in order to achieve its goal of becoming one of the top five providers and doubling assets under management to 100 billion dollars by 2028.
The bank is positioning itself as a "holistic financial planning company", said Christopher Dean, Managing Director of Wealth, Premier and Personal Banking at HSBC UK.
CEO Elhedery, who has been in office since September, has initiated a comprehensive restructuring of the group and wants to save 1.8 billion dollars in costs, primarily by reducing personnel costs by 8 percent. Hundreds of jobs have already been cut and business units such as HSBC's M&A and equity capital markets division in the UK and Europe have been closed. The bank will have to bear severance costs of 200 million dollars this year.
Asset management is one of the few areas whose employees have so far been largely spared from the red pencil. The bank has also hired new staff for the private banking team in the UK, although not to the same extent as in general asset management.
According to Dean, HSBC plans to expand its UK wealth management business organically for the time being. The bank wants to capitalize on those customers who have a bank account with HSBC but do not currently receive financial advice from the bank.