If you work for HSBC's global banking and markets (GB&M) division and are feeling sweaty about rumours of 20,000 redundancies across the bank in the imminent future, Chirantan Barua, senior analyst at Bernstein Research, is here to assuage your angst.
In a new note, Barua says HSBC has little to gain from slashing its investment bank in the style of UBS. The unit is structured very differently to that of peers, with massive balance sheet management (BSM) and transaction banking ('banking') operations alongside an overwhelmingly FX-focused markets business. Moreover, this markets business is performing well compared to peers and is integral for the functioning of the broader HSBC group.
Taken from Barua's presentation, the charts below make GB&M's case. HSBC's traders can only hope that Stuart Gulliver looks at them before his investor day presentation next week.