HSBC CEO stated: "Europe's largest bank" must break into the "top 5 globally"

HSBC HOLDINGS' new CEO Georges Elhedery vowed to drive restructuring at Europe's largest bank, ensuring its core business areas rank among the top five globally. On Tuesday, HSBC CEO Georges Elhedery defended his bold restructuring plan at the Financial Times Global Banking Summit, stating that the decision to close key investment banking operations in the UK, Europe, and the Americas was "difficult" but necessary. He stated: Some decisions are unpopular, but I did not take this position to be popular. Elhedery pledged to "double down" on mergers and acquisitions consulting and equity capital markets in the Middle East and Asia, believing HSBC can become the best institution in these markets. Since Elhedery took office in September last year, HSBC has restructured its operational framework, eliminated high-paid banker tiers, and shifted its strategic focus towards the Asian and Middle Eastern markets. "Relentless" Commitment to Restructuring Elhedery made it clear at the summit that HSBC must take a "ruthless" approach to its business portfolio. He said: We must do whatever it takes. We need to be the best at what we do. The CEO emphasized that HSBC is "rapidly advancing" its restructuring in the spirit of simplification and focusing on strengths. He stated: In those few areas where we clearly failed to break into the top 20, we must make ruthless decisions and acknowledge that we should not be in those businesses. Since taking over as CEO in September last year, Elhedery has initiated a comprehensive restructuring of the British bank. The reforms include reclassifying HSBC's operations into two major units—later internally renamed "Asia and the Middle East" and "Europe and the Americas," closing key investment banking divisions, and merging two of its three main business units. Chairman Position Still Vacant The HSBC board is also under pressure to appoint a permanent chairman as soon as possible to succeed Sir Mark Tucker, who stepped down earlier this year. Reports indicate that after a lengthy recruitment process, former UK Chancellor George Osborne and Goldman Sachs executive Kevin Sneader are seen as frontrunners to replace Tucker. Elhedery stated that the main responsibility of the non-executive chairman is to "challenge" him. He added that while HSBC's interim chairman Brendan Nelson has decided not to serve a full six to nine-year term, Nelson will continue in the role "until the board and the nomination committee find a suitable chairman."