HSBC Eyes Strategic Shift in Retail Banking

HSBC is reportedly reviewing its retail banking operations outside the UK and Hong Kong, as per sources familiar with the discussions cited by the Financial Times. This strategic move could lead to a significant scaling back of operations in countries like Mexico.

Focus on Wealthier 'Premier' Customers

The bank's objective is to reduce its consumer presence and concentrate on serving wealthier 'premier' customers. This aligns with HSBC's broader strategy, as highlighted by Jose Carvalho, HSBC UK's head of wealth and personal banking, during the relaunch of the 'premier' wealth banking brand in Britain last month.

New CEO's Vision for Streamlined Operations

Under the leadership of new CEO Georges Elhedery, who took the helm in September, HSBC is keen on streamlining costs and improving decision-making. Elhedery's vision includes a strong focus on clients in the 'premier' category and wealth management.

Potential Impact Across Multiple Markets

HSBC may consider substantially cutting its retail presence in Mexico, while also reviewing its positions in countries such as Malaysia and Indonesia. The aim is to benefit from concentrating on premier banking in these markets.

HSBC declined to comment on these developments.