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HSBC chief executive Georges Elhedery has announced an overhaul of the bank that would split it into four divisions and create a new geographic set-up separating east from west.
The bank will split off its UK and Hong Kong businesses into new units, forming an “eastern markets” business comprising Asia-Pacific and the Middle East and a “western markets” unit including operations in the UK, Europe and the Americas.
The reorganisation marks a wide-ranging change at the UK-listed lender, which has also named Pam Kaur, its chief risk and compliance officer, as its new chief financial officer, replacing Elhedery who was promoted from the role this year.
“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,” Elhedery said in a statement on Tuesday, adding that the plans would take effect on January 1.
A “corporate and institutional banking” unit will include commercial banking outside the UK and Hong Kong, as well as HSBC’s markets and investment banking businesses, marking a partial merger of two of its largest divisions.
The bank will also have an “international wealth and premier banking” unit made up of its premier banking businesses outside the UK and Hong Kong as well as its private banking, asset management and insurance units.
HSBC said the move would simplify its organisational structure. It currently has three units: commercial banking, global banking and markets and wealth and personal banking.
The Financial Times previously reported that Elhedery was planning a $300mn cost-cutting drive that would target senior bankers.
