HSBC hands out bigger bonuses in push to rival Wall Street

Group 1: Bonus and Compensation - Average bonuses for HSBC investment bank staff increased by 11% to $819,000 (£606,000) compared to 2024, with the overall bonus pool rising by 10% to $3.9 billion, the highest in at least a decade [1] - HSBC plans to withhold bonuses from poorer performing staff, adopting an "eat-what-you-kill" approach similar to US competitors, with zero bonuses seen as a significant humiliation in the industry [2] Group 2: Cost-Cutting and Restructuring - HSBC has reduced the number of managing directors by 15% over the last year, contributing to a £1.1 billion cost-cutting program completed six months early, with many job losses resulting from the merger of its commercial banking, global banking, and markets businesses [3] - The bank's employee count decreased from 221,000 to just over 218,000, while pay and benefits rose from $20.2 billion to $21.5 billion during the same period [4] Group 3: Financial Performance - HSBC reported a pre-tax profit of $29.9 billion for the year, which was a 7% decrease compared to the prior year and below analysts' estimates of $28.9 billion [4] - Revenue from HSBC's Hong Kong business rose by 6% to $15.9 billion, while the UK division saw a 5% increase in revenue to $12.9 billion [6] Group 4: Strategic Focus - Since taking over, HSBC's CEO has implemented a radical restructuring, including staff cuts and division mergers, while also focusing on growth in Asia by closing some banking divisions in the US, UK, and Continental Europe [5]