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- From the beginning of 2025, HSBC plans to operate as four business units
- At the same time, Pam Kaur will become HSBC’s new chief financial officer.
HSBC has announced a major organizational restructuring in an effort to make the banking giant “simpler, more dynamic and agile”.
The lender plans to operate as four business units – UK, Hong Kong, corporate and institutional banking, and international banking and prime banking – while effectively separating its Western and Eastern businesses.
Its UK division will comprise its commercial banking operations in the country, as well as retail banks such as M&S Bank and telephone banking pioneer First Direct.
Review: At the same time as HSBC begins operating under the new organizational structure, Pam Kaur (above right) will become the bank’s new chief financial officer.
All commercial banking activity outside the UK and Hong Kong will form part of its corporate and institutional banking arm.
The segment will also include its global banking and markets business, and a new “Western markets” region spanning Europe, the Americas and its unringed bank in the UK.
Meanwhile, the Asia-Pacific and Middle East territories, where the company makes most of its profits, will be classified as “eastern markets.”
HSBC said the review will “reduce duplication of processes and decision-making that are embedded in the current structure and result in greater alignment and agility in serving our customers.”
To coincide with this, HSBC plans to replace its group executive committee, whose 18 members support chief executive George Elhedery in the day-to-day running of HSBC, with a 12-person operating committee.
The Financial Times reported earlier this month that HSBC was considering cutting senior banking jobs to help save $300 million in costs.
Elhedery said: ‘The changes 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 organization as we focus on the execution of our strategic priorities, which remain unchanged.”
HSBC also said Tuesday that Pam Kaur will become the bank’s new chief financial officer.
Kaur, 60, has worked at HSBC for almost 12 years and is currently the company’s chief risk and compliance officer.
In the three decades before joining the business, she worked for numerous major banks, including Deutsche Bank, RBS and Lloyds Banking Group, and began her career at E&Y, where she qualified as a chartered accountant.
Sir Mark Tucker, HSBC Group chairman, said Kaur was “well respected and well known by the board and was the unanimous choice”. I wish Pam every success in her new role.’
HSBC shares They were steady at 675.3p on Tuesday morning, meaning they are up around 7 per cent this year.
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