Key facts
- HSBC is undergoing a major restructuring under CEO Georges Elhedery, focusing on AI and an Asian-centric growth strategy.
- Generative AI is positioned as HSBC's largest single technology investment, aiming to boost return on tangible equity (RoTE) to over 17% between 2026 and 2028.
- Approximately 85% of HSBC employees now have access to generative AI tools, which are restructuring about 50 core business processes.
- HSBC achieved its annual $1.5 billion cost reduction target in the first half of 2026, six months ahead of schedule.
- The bank is evaluating the potential impact of AI-driven restructuring on approximately 20,000 positions, mainly in non-client-facing roles.
- HSBC's adjusted pre-tax profit was $36.6 billion in 2025, with a reported RoTE of 13.3% (adjusted 17.2%).
HSBC Holdings is undergoing a significant transformation under the leadership of CEO Georges Elhedery, who took over in September 2024. The bank's strategy centers on generative AI as its largest technology investment, aiming to achieve a return on tangible equity (RoTE) of 17% or higher between 2026 and 2028 through automation and process optimization. This ambitious overhaul has propelled HSBC's stock to record highs, signaling investor confidence.
Elhedery's approach involves a sweeping organizational realignment, focusing on higher-growth markets, particularly in Asia, while scaling back non-core operations. Digital investment is expanding to improve efficiency and customer engagement. The bank is also streamlining internal processes to cut redundancies and enhance profitability. As part of this transformation, David Rice was appointed as HSBC's first Chief Artificial Intelligence Officer, effective April 1, 2026.
Approximately 85% of HSBC's global workforce, numbering around 210,000 by the end of 2025, now have access to generative AI tools. These tools are being used to restructure about 50 core business processes, including fraud detection, credit approval, and customer support. While the bank is evaluating the potential impact of AI-driven restructuring on around 20,000 positions, primarily in back- and middle-office roles, Elhedery emphasizes that the primary mission is to equip employees with new skills rather than solely reducing headcount.
HSBC has already demonstrated tangible results from its efficiency programs, achieving its annual $1.5 billion cost savings target six months ahead of schedule in the first half of 2026. The bank reported an adjusted pre-tax profit of $36.6 billion in 2025, with an adjusted RoTE of 17.2%. CFO Pam Kaur noted that AI has been integrated into cost-efficiency programs for customer service centers, client identification teams, and transaction monitoring.