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HSBC CEO Georges Elhedery has just announced a restructuring of the bank that will split the bank into four divisions and create a new geographical structure separating east and west.
The bank will split its UK and Hong Kong businesses into new units, forming an “east markets” business covering Asia-Pacific and the Middle East and a new unit. “Western markets” include operations in the United Kingdom, Europe and the Americas.
The reorganization marks a wide-ranging change at the UK-listed lender, which has also appointed Pam Kaur, its chief risk and compliance officer, as its new chief financial officer, replacing replaces Elhedery, who was promoted from the role this year.
“The changes we are announcing today will make it easier for our colleagues to serve customers and drive the future success of the group,” Elhedery said in a statement Tuesday. ” Elhedery said in a statement on Tuesday, adding that the plans will come into 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 the merger part of HSBC’s two largest divisions.
The bank will also have an “international flagship banking and wealth” unit comprising leading banking businesses outside the UK and Hong Kong as well as private banking, wealth management units and insurance.
HSBC said the move will simplify its organizational structure. It currently has three units: commercial banking, global banking and markets and wealth and personal banking.
The Financial Times previously reported that Elhedery is planning $300 million in cost cuts aimed at senior bankers.
