HONG KONG/LONDON — HSBC on Tuesday undertook a major overhaul under its new chief executive, consolidating parts of its commercial and investment banking operations in a bid to boost profits and cut costs. announced.
The new management structure, which includes the appointment of Pam Kaul as the company’s first female chief financial officer, will “unlock our company’s full potential and drive our future success,” said Georges. CEO El Hederi said in a memo to employees.
The group has divided its operations into four business areas: UK, Hong Kong, Corporate and Institutional Banking, and Wealth Banking.
The overhaul will see El Hederi tackle one of HSBC’s most intractable problems.
The company’s commercial bank serves more than 1.2 million business customers, from start-ups to large enterprises, and has long held the potential for soaring profits if these customers can be persuaded to buy more products. are.
Mr. Elhederi will merge the division with HSBC’s investment banking division (excluding Hong Kong and the UK) to create a new corporate and institutional division to foster closer cooperation and expand the scope of more products internationally. wants to achieve the financier’s recently stated focus on cross-selling to Intensive customers.
HSBC has not disclosed the amount of expected cost savings or the number of jobs affected, but more details will be revealed when the bank releases its third-quarter results on October 29. There is a possibility that it will happen.
HSBC, which employs around 214,000 people around the world, has been eliminating overlapping roles over the years, scaling back operations in Western markets such as the US, France and Canada, and expanding into Asia and other markets with scale. I’ve been focusing on it.
“Today’s announcement is just a move around different parts of the group and doesn’t change the overall picture,” said Ben Thoms, an analyst at RBC Capital Markets.
“Given that the bank is looking to cut costs to offset revenue pressures, the real question awaiting the market is which divisions of the group could be the next challenge. “And how much will this restructuring cost banks?”
As well as structural reforms, HSBC announced a number of senior management changes.
Kaur, 60, will become CFO after previously serving as HSBC’s chief risk and compliance officer. She joined the bank in April 2013 as Group Head of Internal Audit.
Colin Bell, head of Europe, who was once considered a potential CEO candidate, is leaving the company, as is Steven Moss, head of Middle East, according to an internal memo.
