HSBC To Be Integrated

Banking giant HSBC is attempting to boost business at its low performing investment banking arm by intergrating that part of its operations into the main commercial bank.

Chairman John Bond is believed to be following the lead set by rivals JP Morgan Chase and Deutsche Bank and the move will provide the investment bankers with access to the bank's huge £200bn balance sheet. In theory, it will be easier to attract lucrative M & A advisory work if the investment bankers also have the ability to commit large amounts of capital to clients in the form of corporate loans.

The bank will need the approval of Parliament before the separately incorporated investment bank can surrender its licence and the changes are therefore unlikely to take place until the summer.

HSBC is forecast to report 2001 profits of up to £7bn.