Global banking heavyweight HSBC announced intentions to simplify its organisational structure into four businesses citing “strategic priorities”.
As part of the changes, from 1 January 2025, the group will operate through four businesses, namely: Hong Kong, UK, Corporate and Institutional Banking, and International Wealth and Premier Banking.
With these changes, the banking group hopes to reduce the “duplication of processes and decision making” that are built into the current structure and aims to deliver a greater alignment and agility in serving its customers.
Commenting on the announcement, Georges Elhedery, HSBC group CEO, 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.
“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.”
The changes
The new Hong Kong business will comprise of personal banking and commercial banking under the business oversight of David Liao and Surendra Rosha at the group operating committee, for both HSBC as well as Hang Seng Bank.
HSBC’s UK business will contain UK personal banking, including First Direct and M&S Bank, and UK commercial banking, including Innovation Banking, under the sole oversight of Ian Stuart.
The banking group is creating a new corporate and institutional banking business through the integration of its commercial banking business (outside the UK and Hong Kong) with its global banking and markets business and with the geographic region of the western markets (comprising UK non ring-fenced bank, Europe, and the Americas), which is a predominantly wholesale banking region. It will be led by Michael Roberts.
Identifying international wealth as one of its “greatest strategic growth opportunities”, particularly in Asia and Middle East, its new international wealth and premier banking business will bring together its premier banking focused businesses outside of Hong Kong and the UK, its global private bank, and wealth manufacturing businesses, asset management and insurance, to be led by Barry O’Byrne.
The overhaul also includes a simplification of HSBC’s geographical setup, with the Asia-Pacific and Middle Eastern region coming together as the Eastern markets. The Western markets will comprise of the non ring-fenced bank in the UK, the continental Europe business and the Americas.
New group CFO
HSBC also announced the appointment of Pam Kaur as group chief financial officer (GCFO) and an executive director of the board, effective 1 January 2025.
Kaur joined the group in April 2013 as group head of audit, and is currently group chief risk and compliance officer. A “highly experienced” financial services executive with almost 40 years of experience having worked in the UK and the US for British, American and German banks, Kaur brings strong technical knowledge and experience in treasury, capital, balance sheet and risk management.
Commenting on her appointment, Elhedery said: “We had a strong bench of internal and external candidates to choose from and Pam was the exceptional candidate to recommend to the board. I look forward to partnering with her for the next stage of the bank’s growth and development.”
