Elhedery's plan for a "simpler, more dynamic, and agile organisation" has shaken up Europe's largest bank, whose shares in Hong Kong have rallied to an 11-year high.
"Since becoming CEO, I have focused on simplifying how we operate and injected energy and intent into the way we deliver our strategy," Elhedery said in an earnings statement on Wednesday.
"Our strong 2024 performance provides firm financial foundations upon which to build for the future."
The firm said pre-tax profit rose six percent to $32.3 billion in 2024 -- beating an estimate of $31.7 billion compiled by Bloomberg.
Profit attributable to shareholders edged up two percent to $22.9 billion.
The London-headquartered lender also announced a share buy-back of up to $2 billion to be completed by the time it announced this year's first-quarter results.
HSBC generates most of its revenue in Asia and has spent several years pivoting to the region, vowing to develop its wealth business and target fast-growing markets.
Shortly after Elhedery became CEO, the lender said it would simplify its structure and split into four parts: Hong Kong, UK, "corporate and institutional banking" plus "international wealth and premier banking".
The bank will also streamline its geographical set-up by bringing together its Asia-Pacific and Middle East regions, while uniting its European and US operations.
The restructuring "aims to generate approximately $0.3 billion of cost reductions in 2025, with a commitment to an annualised reduction of $1.5 billion in our cost base expected by the end of 2026", it said Wednesday.
HSBC added that it plans to incur costs of $1.8 billion over 2025 and 2026 to deliver the reductions.
- Cost-cutting drive -
Elhedery said he has "put in place a smaller, core team of exceptionally talented leaders" -- but did not specify the scale of the layoffs across the bank.
The lender said last month it would wind down parts of its investment banking operations in Europe, the United Kingdom and the Americas.
The CEO said on Wednesday that his initiatives included "a comprehensive transformation of (HSBC) operations, modernising our infrastructure, and investing in technology such as AI, generative AI, data and analytics".
The lender considers both Britain and Hong Kong its "home markets", though the balancing act has come under pressure as relations sour between China and the West.
Elhedery's predecessor Noel Quinn in 2023 fended off a call for HSBC to spin off its Asia assets.
The bank projected that China this year will deliver performance "comparable" to its 2024 GDP growth of around five percent, as the nation transforms to a "consumption-led and innovation-focused economic model".
Outlook for interest rates "remains volatile and uncertain" particularly in the medium term, HSBC added.
Last year HSBC gained $4.8 billion from disposing its banking business in Canada, while axing its Argentina operations led to a $1 billion loss.
Operating expenses grew three percent to $33 billion in 2024. Revenue stayed flat at $65.9 billion.
The bank's Hong Kong-listed shares rose by more than one percent after the results announcement.
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