HSBC Holdings has decided to change its organisational structure into four businesses
From January 1, 2025, the company will operate through four businesses: Hong Kong, the UK ; corporate and institutional banking; and international wealth and premier banking. The changes will reduce the duplication of processes and decision making that are built into the current structure and will result in greater alignment and agility in serving our customers. The group’s functions will be realigned to support the four new businesses, an announcement to the Hong Kong Stock Exchange (HKEX) said on October 22.
The new ‘Hong Kong business’ will comprise 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.
The UK ring-fenced bank has a leading market position in our home market of the UK and will continue to be a critical pillar of our strategy. The new ‘UK business; will comprise UK personal banking, including First Direct and M&S Bank and UK commercial banking, including innovation canking under the sole business oversight of Ian Stuart.
The corporate and institutional banking business which includes global wholesale banking, such as cross-border transaction banking, and capital markets. This will include the integration of its commercial banking, outside of the UK and Hong Kong, with its global banking and markets business which inludes Western markets, including its non ring-fenced UK bank, Europe and the America, predemoninatly a wholesale banking region.
Michael Roberts will lead corporate and institutional banking and Western Markets.
The international wealth and premier banking group, which is particularly strong in Asia and the Middle East, will bring together its Premier banking focussed businesses outside of Hong Kong and the UK, its Global Private Bank, and its asset management and insurance. Barry O’Byrne will lead international wealth and premier banking.
As part of its new group organisational structure, Eastern Markets will bring together the Asia Pacific region (Apac) and the Middle East region (MENAT) and will be overseen by David Liao and Surendra Rosha.
The “Western Markets” will comprise the non-ring-fenced bank in the UK, its continental European business and the Americas and will be overseen by Michael Roberts.
In addition, the group executive committee of 18 members will be replaced by a new group operating committee comprised of 12 members. The Group OpCo will serve as the leading decision-making executive committee of the firm. These changes will be effective from January 1, 2025. Further details will be announced alongside the 2024 full year results.
HSBC group chief executive officer, Georges Elhedery, commented: “The changes that we are announcing today will make it easier for our colleagues to serve our customers and drive the future success of the group. 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 added: “I’m excited about the opportunities ahead of us and firmly believe that this structure sets us up to deliver the next phase of growth. Our home markets of the UK and Hong Kong, together with our corporate and institutional banking as well as our wealth and Premier banking businesses, are the core strengths of HSBC. 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.”
He continued: “This is how we will fast forward our plans to execute our strategy, unleash the full potential of the bank and ensure our talented colleagues can thrive, and deliver best in class products and service excellence, for our customers. When our customers succeed, so do we.”
New CFO
In another announcement on October 22, the bank has appointed Pam Kaur as group chief financial officer (GCFO) and an executive director of the board of directors effective January 1, 2025.
Kaur joined the group in April 2013 as group head of audit, is currently group chief risk and compliance officer (GCRCO). She is a highly experienced financial services executive with almost 40 years’ experience having worked in the UK and the US for British, American and German banks.
Jon Bingham, interim GCFO, will resume his role of global financial controller. Sir Mark Tucker, HSBC Group Chairman, said: “I would like to congratulate Pam on her appointment as GCFO. She is highly respected and well known to the Board and was the unanimous choice. I wish Pam every success in her new role and thank Jon for his excellent support as interim GCFO.”
HSBC said it will provide an update on Kaur’s successor as GCRCO in due course.
¬ Haymarket Media Limited. All rights reserved.
