HSBC Holdings (LON:HSBA) is consolidating its private banking units in Europe into a single structure, Reuters has reported. The news comes ahead of the FTSE 100 bank’s annual general meeting on April 20, to be followed its first-quarter results on May 4.
HSBC’s share price has fallen deep into the red in London in today’s session, having given up 1.81 percent to 672.80p as of 13:42 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.42 percent lower at 7,234.22 points. The group’s shares have added more than four percent to their value over the past year, as compared with about a 1.3-percent dip in the Footsie.
New European private bank structure
Reuters reported today that HSBC would consolidate its private banking units in the UK, Channel Islands, France, Germany, Switzerland and Luxembourg into a single regional structure with immediate effect. The new structure will be called HSBC Global Private Banking, EMEA, and will be led by Chris Allen, who has been appointed regional head of global private banking.
“This will create a regional private banking business that is more integrated, strategically aligned and well positioned to deliver continued growth for HSBC Private Banking,” Europe’s biggest bank explained, as quoted by the newswire, adding that it strategy will remain unchanged.
Analysts on Asia-focused lender
Barclays, which has a ‘neutral’ rating on HSBC, set a price target on the stock of 720p last week, while Deutsche Bank, which also sees the Asia-focused lender as a ‘neutral,’ set a valuation of 680p on the shares. According to MarketBeat, HSBC currently has a consensus ‘hold’ rating and an average price target of 758.33p.