HSBC’s new boss has unveiled a sweeping overhaul of its operational structure as Europe’s biggest lender also appointed its first female finance chief.
Georges Elhedery, who took over as CEO from Noel Quinn at the start of September, has divided the London-based bank into four new divisions effective from the start of 2025.
The bank will split off its UK and Hong Kong businesses into new units as part of revamped eastern and western markets divisions.
A new corporate and institutional banking unit will see HSBC merge its global commercial and investment banking operations.
Meanwhile, the bank will establish a new international wealth and premier banking business.
Elhedery 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.”
On Tuesday, HSBC also announced the appointment of Pam Kaur as chief financial officer, filling the vacancy left by Elhedery.
She is due to become the first female CFO in the bank’s 159-year history when she takes the post on 1 January 2025.
Kaur, 60, was appointed HSBC’s chief risk officer in January 2020 and later took on responsibility for compliance in June 2021. She joined HSBC in 2013 as its head of internal audit.
Elhedery has already made sweeping changes to the bank’s management as he looks to reduce HSBC’s massive cost base.
It was reported earlier this month that he was drawing up plans to reduce top management layers and save the bank up to $300m (£229m).
A merger of HSBC’s commercial and investment banking arms is expected to reduce layers of upper management as the 214,000-employee bank seeks to eliminate duplication in its top ranks.
The news comes as HSBC faces the prospect of lower profits as central banks worldwide lower borrowing costs. Rate hikes helped the lender achieve a record pretax profit of $30.3bn (£24.0bn) in 2023.