HSBC has unveiled an overhaul of its global structure as new boss Georges Elhedery seeks to reduce costs and focus on the bank’s strongest divisions.
The bank said it is simplifying operations by splitting into four key units, and geographically into East and West.
It also announced the appointment of the first female finance chief in the bank’s history.
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 simplification plans include merging its commercial and institutional banking operations, and creating a new international wealth and premier banking division.
The other two units will be formed of a new UK business and a Hong Kong business.
It is also set to restructure across geographic lines with the formation of “Eastern markets”, which incorporates Asia and the Middle East, and “Western markets”, comprising the UK, Europe and Americas.
The changes are set to take effect from 2025.
It has previously been reported that the shake-up will lead to roles being axed among its high-paid top bankers, including across the large commercial and investment banking divisions.
The creation of Eastern and Western markets will also see previously standalone divisions, such as Europe and the Americas, come together under one chief executive.
Michael Roberts will lead both the corporate and institutional banking and the Western markets units.
Mr Elhedery, who took on the top job last month, said: “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.
“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.”
HSBC also announced a leadership reshuffle which includes the appointment of Pam Kaur as its chief finance officer, reported to be the first woman to fill the role which was previously held by Mr Elhedery.
Ms Kaur first joined the banking group more than a decade ago and has held a number of senior roles, currently as its chief risk and compliance officer.
She will take home a fixed pay allowance of nearly £1.1 million as part of her annual pay packet, with the new role effective from 2025.
The restructure will see the bank’s executive committee, which makes key decisions for the firm, cut from 18 members to 12 members.
Mr Elhedery is said to be targeting cost savings through the overhaul, thought to amount to up to 300 million US dollars (£231 million).
HSBC has long been on an Asian pivot, but it has not gone far enough for a section of the investor base, who have wanted to see the business spin out its Asian operations
Susannah Streeter, head of money and markets for Hargreaves Lansdown, said: “HSBC has long been on an Asian pivot, but it has not gone far enough for a section of the investor base, who have wanted to see the business spin out its Asian operations.
“This has been repeatedly rebuffed and, with Mr Elhedery maintaining that the bank’s strategic priorities remain unchanged, splitting its operations into Eastern markets and Western markets division does not seem to indicate that a hiving-off is on the cards.”
Ms Streeter added: “Instead, cost-cutting is a big driver of these changes, with fresh efficiencies likely through the simplification of its geographical structures and the merger of its commercial and institutional banking operations.”
HSBC has faced pressure for its biggest shareholder, Chinese insurer Ping An, which has called for the bank to be split into two, with a separate Asia-headquartered business.
A plan to break up the bank was rejected by shareholders last year, but bosses said they were planning to bolster income in Asia amid the pressure.
Mr Elhedery took a six-month sabbatical in 2022 for personal development, including work to improve his Mandarin.
