HSBC's CEO hints at the completion of a major overhaul, despite a dip in profits. The bank's leader, Georges Elhedery, who took the reins in 2024, is steering HSBC towards a simpler, more agile future. Despite a 7% drop in pre-tax profits to $29.9 billion, the bank is on track to meet its ambitious targets. This includes a 17% return on tangible equity by 2028, up from the previous target of the mid-teens. However, the bank's Chinese operations faced a 66% plunge in pre-tax profit to $1.1 billion, due to a write-off related to the property sector downturn. HSBC's stock has soared by 50% in 2025, but analysts question the cost forecast for 2026, especially in the competitive AI technology landscape. The CEO's pay rose by 18% in 2025, while the bank's final dividend was 45 cents per share, lower than the previous year's total payment. This overhaul, which includes shedding smaller investment banking units and reorganizing divisions, has been a significant transformation for HSBC, and the CEO's leadership has been pivotal in this journey.
