HSBC shareholders have overwhelmingly supported CEO Noel Quinn’s plan to scale back the bank’s investment banking operations, marking a significant shift in the lender’s strategic focus. The decision, announced at the annual general meeting on February 16, 2025, reflects HSBC’s commitment to prioritizing retail and commercial banking while reducing exposure to volatile investment banking activities.

The retrenchment plan includes exiting certain high-risk trading desks and reallocating resources to more stable revenue streams, such as wealth management and digital banking. Analysts have praised the move, noting that it aligns with broader industry trends toward simplification and risk reduction.

Despite some concerns about short-term revenue impacts, investors have expressed confidence in Quinn’s leadership, with 85% of shareholders voting in favor of the strategy. HSBC’s shares rose 2.5% following the announcement, signaling market approval of the bank’s long-term vision.