HSBC considers a significant reduction of its retail banking business in countries outside its core markets, the United Kingdom and Hong Kong. Markets such as Mexico could be affected, where the company may want to focus its activities on wealthier "Premier" customers, according to people familiar with the matter.

Mexico, once considered a strategic growth market, is under review. HSBC entered there in 2002 through the acquisition of Grupo Financiero Bital. Despite having deposits of nearly $30 billion, making Mexico the ninth-largest market for the bank, the annual operating costs amount to $1.8 billion. The business also faced reputational issues: in 2012, HSBC had to pay a $2 billion fine due to money laundering allegations, prompting then-chairman Douglas Flint to describe it as a "humiliating experience.

The problem is the lack of scale in consumer business," said a person familiar with the review. HSBC could reduce its presence in the mass market and instead focus on premier banking and wealthier clients.

Under the leadership of Georges Elhedery, the new CEO of the bank since September, HSBC aims to streamline costs and realign its business strategy. The company seeks savings of up to 500 million US dollars per year, mainly through job cuts and the reduction of overhead costs.

HSBC has already withdrawn from loss-making consumer businesses in France, the USA, and Canada. In markets such as Malaysia and Indonesia, it is also being examined whether the business should focus on premier customers rather than on a broad mass market offering.

Elhedery is also implementing comprehensive internal reforms, including the consolidation of leadership positions and the elimination of the prestigious "General Manager" title to simplify the structure.

The strategic realignment at HSBC reflects similar moves by international rival Citigroup, which is currently withdrawing from its consumer business in Mexico. Both banks are thus responding to the challenges of global business expansion, which is increasingly constrained by efficiency and cost pressures.

HSBC declined to comment on the plans.