HSBC reveals main restructure as new CFO named

HSBC has announced a major organisational shake-up in efforts to make the banking giant ‘simpler, more dynamic and agile’. 

The lender plans to operate as four business units – the UK, Hong Kong, corporate and institutional banking, and international wealth and premier banking – while effectively separating its western and eastern business. 

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.

Overhaul: At the same time HSBC starts functioning under the new organisational structure, Pam Kaur (top right) will become the bank’s new finance boss

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 encompassing Europe, the Americas, and its non-ringfenced 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 overhaul will ‘reduce the duplication of processes and decision making that are built into the current structure and will 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 HSBC’s day-to-day running, with a 12-person operating committee.

The Financial Times reported earlier this month that HSBC was looking at cutting senior banking posts to help save $300million in costs. 

Elhedery said: ‘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.

‘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.’

HSBC also said on Tuesday that Pam Kaur will become the bank’s new finance boss.

Kaur, 60, has worked at HSBC for nearly 12 years and is currently the firm’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, chairman of HSBC Group, said Ms Kaur was ‘highly respected and well known to the board and was the unanimous choice. I wish Pam every success in her new role.’

HSBC shares were flat at 675.3p on Tuesday morning, meaning they have risen by around 7 per cent this year.