HSBC Holdings, plc ( HSBC ). shares are trading slightly lower in the premarket session on Friday.

The banking giant is reportedly set to unveil $1.5 billion in annual cost savings as part of a sweeping reorganization led by its new CEO, Georges Elhedery, reports Financial Times.

The bank will outline the savings, which come after one-time costs, on Wednesday, February 19, when it presents its full-year results to investors, the report read, citing people familiar with the discussions.

Elhedery's overhaul, announced in October, aims to reduce duplication and streamline operations within the bank, which has struggled with bureaucratic inefficiencies.

Elhedery was appointed by HSBC ( HSBC ) on September 2, 2024. The company’s stock has grown around 30% since the appointment.

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Key to the restructuring is a shift to a more focused structure, with separate units for the UK and Hong Kong markets, along with dedicated teams for corporate banking and international wealth management.

The changes also involve merging HSBC's ( HSBC ) commercial and investment banks, a significant departure from the bank's former setup, Financial Times adds.

According to Benzinga Pro, HSBC ( HSBC ) stock has gained over 40% in the past year. Investors can gain exposure to the stock via Elevation Series Trust The Opal International Dividend Income ETF .

Last month, the bank made it to the headlines for making significant changes to its investment banking operations as part of a restructuring plan led by Elhedery.

The bank will shut down key parts of its investment banking business in the U.K., Europe and the Americas, including its mergers and acquisitions advisory and equity capital markets units outside Asia and the Middle East.

Price Action: HSBC ( HSBC ) shares are trading lower by 0.25% to $55.05 premarket at last check Friday.

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