HSBC share price: Lender loses senior European deal makers

At least 10 high-profile dealmakers have left bank in recent months

HSBC share price: Lender loses senior European deal makers

HSBC Holdings (LON:HSBA) has lost at least 10 high-profile dealmakers in Europe in recent months, Reuters has reported, quoting sources. The departures came as the bank failed to overhaul its investment banking unit and revamp client teams.

HSBC’s share price fell in the previous session, giving up 0.72 percent to close at 720.60p. The shares underperformed the broader UK market, with the benchmark FTSE 100 index shedding 11.37 points to end the session 0.15 percent lower at 7,678.20.

HSBC loses European deal makers

People with knowledge of the matter told Reuters that overall dozens of investment bankers had quit HSBC, including senior managers at the bank’s top performing European private equity team. The departures reflect a growing sense of frustration over what the sources explained was a lack of clear investment banking strategy at Europe’s biggest bank and its failure to rebuild a competitive team on the continent.

A spokesman for HSBC told the newswire that the bank had hired dozens of senior bankers recently, significantly outweighing the number of departures. A list provided by the bank to Reuters meanwhile suggested that the majority of the hires are based in North America and Asia.

The report comes after it emerged earlier this week that Europe’s biggest bank had interviewed the outgoing chief financial officer of Royal Bank of Scotland Group (LON:RBS) as it looks to replace Iain Mackay as head of its finance department.

Analyst ratings update

As of May 25, the consensus forecast amongst 22 polled investment analysts covering HSBC for the Financial Times advises investors to hold their position in the company. MarketBeat meanwhile reports that Goldman Sachs, which sees the lender as ‘neutral,’ set a price target on the stock of 790p yesterday.

As of 08:08 BST, Friday, 01 June, HSBC Holdings plc share price is 720.60p.

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