HSBC’s new boss unveils major restructuring
HSBC’s new boss has unveiled a sweeping overhaul of its global structure as Europe’s biggest lender also appointed its first female finance chief.
Georges Elhedery, who took over as chief executive from Noel Quinn at the start of September, has divided the London-based bank into four new divisions – effective from 1 January 2025.
The bank will also revamp its geographical setup with “Eastern markets”, comprising Asia and the Middle East, and “Western markets”, grouping the UK, Europe and Americas.
A new corporate and institutional banking unit will see HSBC merge its global commercial and investment banking operations.
Michael Roberts, currently HSBC’s CEO for the US and Americas, will lead both the corporate and institutional banking and the Western markets units.
Elsewhere, HSBC will split off its UK and Hong Kong businesses into two new units. It will also create a new international wealth and premier banking division.
“The new structure will result in a simpler, more dynamic, and agile organisation as we focus on executing against our strategic priorities, which remain unchanged,” Elhedery said.
“By making these changes, we can better focus on increasing leadership and market share in those businesses which have clear competitive advantage and the greatest opportunities to grow.”
Elhedery has already made sweeping changes to the bank’s management as he looks to trim HSBC’s massive cost base.
It was reported earlier this month that he was drawing up plans to reduce top management layers and save the bank up to $300m (£229m).
A merger of HSBC’s commercial and investment banking arms is expected to reduce layers of upper management as the 214,000-employee bank seeks to eliminate duplication in its top ranks.
The changes come as HSBC faces the prospect of lower profits as central banks worldwide lower borrowing costs. Rate hikes helped the lender achieve a record pretax profit of $30.3bn (£24.0bn) in 2023.
On Tuesday, HSBC also announced the appointment of Pam Kaur as chief financial officer, filling the vacancy left by Elhedery.
She is due to become the first female CFO in the bank’s 159-year history when she takes the post on 1 January 2025.
Kaur, 60, was appointed HSBC’s chief risk officer in January 2020 and later took on responsibility for compliance in June 2021. She joined HSBC in 2013 as its head of internal audit.