HSBC to wind down parts of investment banking units in UK, Europe and US
HSBC is to shut down parts of its investment banking operations in the UK, Europe and the Americas as bosses continue their overhaul of the banking giant.
Georges Elhedery has overseen a significant shake-up of the London-based firm since taking over as chief executive last September.
The company told staff in a memo on Tuesday morning that it will wind down its mergers and acquisitions (M&A) advisory and equity capital markets services outside of Asia and the Middle East.
It has not disclosed how many workers will be affected by the changes.
The lender said it will start holding talks with clients in the coming days about shutting down these operations and will finish current deals.
In the memo, the company added that its 'intention is to move to a more competitive, scalable, financing-led model'.
The bank will maintain its other operations in western markets.
Its latest financial results showed that its global investment banking operations represented 6% of total revenues for the latest half-year.
An HSBC spokesman said: 'As part of our ongoing efforts to simplify HSBC and increase leadership in our areas of strength, we are finalising a review of our investment banking business.
'We will retain more focused M&A and equity capital markets capabilities in Asia and the Middle East and will begin to wind down our M&A and equity capital markets activities in the UK, Europe, and the US, subject to local legal requirements.'
It comes days after HSBC confirmed plans to shut down its global payments app Zing a year after launch, putting hundreds of jobs at risk.
Zing was launched in the UK in January 2024 for people to hold funds in different currencies, send money internationally, or spend in the UK and abroad through an app and a multi-currency debit card.
The closure is understood to be putting up to about 400 jobs at risk, including a significant number of non-HSBC staff contracted for customer support roles.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
Roblox hands $6M in bonuses to CFO poached from Paramount
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Departing Paramount Global CFO Naveen Chopra is set to receive $6 million in cash bonuses when he takes the top financial seat at immersive game platform Roblox, according to a Tuesday securities filing. Chopra is set to take Roblox's top finance seat on June 30, the San Mateo, Calif.-based game platform said. The bonuses that Chopra, 51, is set to receive from his new employer will be comprised of a $3 million cash signing bonus, which will vest and be paid throughout a three-year period, as well as a second, $3 million signing bonus, '1/36 of which will be earned for each month of completed service,' according to Roblox. His compensation will also include an annual base salary of $735,000. The New York-based media and entertainment conglomerate Paramount appointed Andrew Warren, currently serving as the strategic advisor to the Office of the CEO to the role of interim CFO upon Chopra's departure, Paramount said in a Monday press release. Chopra will from his role effective June 27 after a four-year tenure as Paramount's finance chief, the company said. The incoming finance chief will also receive an award of restricted stock units with a value of $28 million, according to the filing with the Securities and Exchange Commission. Roblox has also earmarked $15,000 per month for temporary housing reimbursement through Aug. 31, 2026, with a maximum of $900,000 in relocation expenses for the new CFO, per the filing. As CFO for the Roblox platform, which enables users to both program and play games, Chopra will succeed Michael Guthrie, Roblox said in a Tuesday filing. Guthrie will remain to provide 'advisory transitional services' to Roblox for a one-month period, the company said. An alum large companies including Amazon and music streaming service Pandora, Chopra has served as Paramount Global's CFO beginning in August 2020, according to his LinkedIn profile. Prior to joining Paramount, he served as CFO, Amazon Devices and Services for the e-commerce company, and served as CFO and interim CEO for Pandora. He also held various executive roles during a 13-year career at TiVo. The CFO appointment comes as Roblox looks to entice new users to its platform, with the company reporting a surge in its daily active users (DAU) for its Q1 2025 ended Mar. 31. The company saw 97.8 million DAUs in the period, a 26% jump year-over-year, according to its earnings report published May 8. Roblox also reported just over $1 billion in revenue for its Q1, a 29% increase YoY, as well as a 31% YoY rise in bookings to reach $1.2 billion, according to its earning report. Despite its most recent growth, Roblox has struggled to reassure investors about its potential for profitability. The company reported a consolidated net loss of $216.3 million for its Q1 2025, after posting a full-year consolidated net loss for 2024 of just over $940 million, according to earnings reports. The company has also faced questions regarding the safety of its platform, especially regarding its use by children: last October, now-defunct shortseller Hindenburg Research published a report accusing the platform of both inflating its user numbers and of being a 'pedophile hellscape for kids.' Questions about the platform's safety have repeatedly surfaced among both parents and other users, with digital behavior researchers Revealing Reality reporting the current safety measures employed by the platform remained 'limited in their effectiveness,' The Guardian reported in April. At Paramount, the CFO switch comes as the entertainment platform is seeking to navigate its own set of challenges after reconstituting its executive leadership last April — now led by a triumvirate of top executives in the Office of the CEO, including George Cheeks, Chris McCarthy and Brian Robbins. Chopra's departure comes as Paramount is reportedly gearing up to lay off about 3.5% of its workforce, CNBC reported Tuesday, citing a company memo. Last year Paramount moved to cut about 15% of its workforce in a three-phase plan, as part of a strategy to reduce its annual costs by $500 million, CNBC reported at the time. The cost-cutting moves also come as Paramount still seeks approval for its stalled $8 billion merger with Skydance, which has also been grappling with President Donald Trump's ongoing $20 billion lawsuit against 60 Minutes. Roblox and Paramount declined to comment beyond its press release. Recommended Reading Saab deputy finance chief moves to CFO chair Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22 minutes ago
- Yahoo
Why Qualcomm's (QCOM) Long-Term Prospects Shine, Even if the Stock Doesn't
Qualcomm (QCOM) has underperformed over the past year, declining 26%, primarily due to macroeconomic factors rather than internal company mechanics. Although the company's fundamentals remain very solid, it has faced some headwinds, such as concerns that its business is too concentrated on Apple (AAPL) for modem revenue, despite its broader operations still being more rooted in the Android ecosystem. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Still, that doesn't stop me from seeing the stock as a long-term Buy—especially since my bullishness comes from Qualcomm's key competitive advantage: its ability to build the Snapdragon platform, which integrates a modem, CPU, and even a GPU chip—something no other competitor can currently match. This positions the company to tap into new business opportunities that could help offset its current customer concentration. Beyond that, Qualcomm's asset-light model allows it to generate very high returns on its investments, highlighting its operational efficiency, strong financial health, and consistent value creation for shareholders. This helps justify the company trading at a slightly stretched valuation when considering its operational profits relative to enterprise value. When looking for value stocks, one of the most important factors—if not the most important—is a company's ability to generate consistent earnings. Examining QCOM's balance sheet reveals a capital-light, high-margin model driven by intellectual property (IP) and characterized by heavy investment in research and development (R&D). As a fabless semiconductor company, Qualcomm relies on external manufacturing partners such as TSMC (TSM) and Samsung (SSNLF) for chip production. Notably, only approximately 7% of its $55.3 billion in total assets is allocated to property, plant, and equipment (PP&E), which is relatively low compared to the industry average. This underscores the efficiency of its asset-light business model and the minimal physical infrastructure required to support its operations. Roughly 18% of its assets are classified as goodwill, indicating a strong track record of acquisitions, which is clearly part of its strategy to acquire intellectual property (IP) or talent rather than build everything in-house. One recent example is the $2.4 billion acquisition of the UK-based semiconductor firm Alphawave. Additionally, approximately 12% of Qualcomm's total assets are tied to IP licensing and chip design. That makes sense, given its dominant position in the Android smartphone chip market, especially in the high-end segment with its Snapdragon lineup. Given that around 37% of Qualcomm's total assets are intangible, it's worth considering the company's actual operational efficiency once these intangibles are excluded. To gain a clearer picture, it is sensible to examine how Qualcomm allocates its limited tangible capital to generate profits. Over the past twelve months, Qualcomm produced an operating profit of $12.3 billion. During the same period, its net working capital was approximately $2.7 billion, and its invested capital—mainly property, plant, and equipment, and other intangibles—totaled roughly $8.28 billion. Dividing the operating profit by this invested capital plus working capital yields an eye-catching ~112% return on capital (ROC). That kind of number highlights Qualcomm's exceptional operational efficiency, something typically only seen in asset-light, IP-driven tech or software companies. For context, most of these firms operate with a return on capital (ROC) well below 50%. In short, despite a balance sheet loaded with intangibles, Qualcomm proves that it's highly efficient with the real capital it uses. And that translates into three key advantages: sustainable value creation, a durable competitive moat, and stronger financial flexibility. Even a company with a high return on capital isn't necessarily a buy—not if you're overpaying for it. That's why it's vital to assess operating profitability in relation to the company's total valuation, not just traditional P/E or P/B metrics. One way to do this is by comparing operating profit to enterprise value (EV), which reflects what the market is actually paying for the entire business. In Qualcomm's case, we can measure this by dividing its operating profit by its enterprise value (EV). Over the last twelve months, Qualcomm generated $12.3 billion in operating profit, while its current enterprise value stands at $164.6 billion. That results in an earnings yield of 7.5%. To interpret that number correctly, it should be compared to Qualcomm's cost of capital. Using a 10-year treasury yield of 4.5%, a beta of 1.2, and an equity risk premium of 4–5%, the estimated cost of equity falls between 9% and 10%. Since the earnings yield of 7.5% is below this range, Qualcomm doesn't appear particularly cheap at the moment. However, judged against historic performance against the S&P 500 (SPX), QCOM stock has underperformed. That said, this isn't necessarily a red flag. Even if the stock looks a bit expensive on this metric, Qualcomm continues to create value through its exceptional return on capital and strong cash generation. This is reflected in its sustainable 2.28% dividend yield and $16.5 billion in share buybacks over the past four years. Given Qualcomm's maturity, profitability, and operational efficiency, a lower earnings yield may be viewed as acceptable, reflecting a premium for quality and stability. Analyst sentiment on Qualcomm stock is somewhat mixed. Out of 17 experts who've issued ratings in the past three months, eight are bullish, eight are neutral, and just one is bearish. Still, there's little hesitation when it comes to upside expectations. Qualcomm's average stock price target is at $177.75, suggesting ~14% in potential upside over the next twelve months. While traditional valuation metrics may indicate that Qualcomm is undervalued, I believe that perspective overlooks the company's strong operational efficiency. Qualcomm doesn't need to appear 'cheap' to represent a compelling investment opportunity. Its robust, above-average returns on capital, driven by an asset-light business model, demonstrate its ability to create substantial shareholder value and may, in fact, justify a valuation premium. Viewed through this fundamental lens, and given Qualcomm's consistent track record of long-term value creation, I consider it a solid long-term investment, even at its current, relatively full valuation. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28 minutes ago
- Yahoo
Grupo Financiero Galicia: Q1 Earnings Snapshot
BUENOS AIRES, Argentina (AP) — BUENOS AIRES, Argentina (AP) — Grupo Financiero Galicia SA (GGAL) on Tuesday reported first-quarter earnings of $154.1 million. The Buenos Aires, Argentina-based bank said it had earnings of 96 cents per share. The results beat Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 90 cents per share. The financial services provider posted revenue of $2.18 billion in the period. Its revenue net of interest expense was $1.51 billion, which did not meet Street forecasts. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on GGAL at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
