HSBC is evolving its current organisational structure into four distinct businesses while also consolidating its geographic segments into Eastern and Western markets with effect from Jan 1, 2025.
On Tuesday (Oct 22), the London-headquartered financial institution said it will operate the following segments “with clear lines of responsibility”: Hong Kong, UK, corporate and institutional banking, as well as international wealth and premier banking.
The Hong Kong business will comprise personal and commercial banking. It will be led by HSBC co-chief executives David Liao and Surendra Rosha, both of whom also head the group operating committee for HSBC as well as its subsidiary, Hang Seng Bank.
Additionally, Liao and Rosha will lead HSBC’s simplified geographic market segment to be known as the Eastern markets, which will bring together the Asia-Pacific and Middle East regions.
Meanwhile, the UK business will be led solely by current HSBC UK chief executive Ian Stuart. It will comprise both personal banking (including First Direct and M&S Bank) and commercial banking, which includes the innovation banking sub-segment.
While the first two are categorised under HSBC’s home markets, the other two are by banking segments.
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The corporate and institutional banking segment is the result of combining HSBC’s commercial banking business outside of the UK and Hong Kong, together with its global banking and markets business.
It also integrates the geographic region of the group’s Western markets – comprising its UK non-ring-fenced bank, Europe, and the Americas – which HSBC highlighted as a predominantly wholesale banking region.
HSBC North America chief executive and president Michael Roberts will head the corporate and institutional banking segment. He will further take charge of HSBC’s new geographic segment to be known as the Western markets, which will comprise HSBC’s non-ring-fenced bank in the UK, its continental European business, and the Americas.
Lastly, the international wealth and premier banking segment consolidates HSBC’s premier banking-focused businesses outside of Hong Kong and the UK; its global private bank business; and its wealth manufacturing businesses, namely asset management and insurance.
It will be led by Barry O’Byrne, who is chief executive of the group’s current wealth and personal banking business.
HSBC group chief executive Georges Elhedery said the new business structure will result in a “simpler, more dynamic and agile organisation” as HSBC’s strategic proprieties remain unchanged.
“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… I am excited about the opportunities ahead of us and firmly believe that this structure sets us up to deliver the next phase of growth,” said Elhedery.
Pam Kaur as group CFO
Separately on the same day, the bank also said it was appointing Pam Kaur as its group chief financial officer (CFO) and executive director with effect from Jan 1, 2025.
Kaur will be HSBC’s first female financial chief since the bank’s establishment in 1865. She replaces Elhedery, who stepped up to become the bank’s group chief executive earlier this year.
Jon Bingham, who has been filling in for Elhedery in the interim, will resume his role of global financial controller once Kaur’s new appointment takes effect.
Kaur joined HSBC in April 2013 and presently serves as group chief risk and compliance officer. Her successor will be announced “in due course”, said the bank.
In its Oct 22 press statement, HSBC highlighted Kaur’s qualifications as a chartered accountant along with her “strong technical knowledge” and experience in treasury, capital, balance sheet and risk management.
“She has served on the group executive committee for over a decade and brings a global perspective and an appreciation of the strategic challenges and opportunities, locally and globally, facing the banking industry in general and HSBC in particular,” said the bank.
Noting that Kaur is “highly respected and well-known to the board”, group chairman Mark Tucker said Kaur’s appointment was “the unanimous choice”.
“We had a strong bench of internal and external candidates to choose from and Pam was the exceptional candidate to recommend to the board,” added Elhedery.
