HSBC boss splits East and West in main overhaul

HSBC’s new boss has unveiled a major overhaul that will include a geographic split between East and West.

Georges Elhedery said the plan to ‘simplify’ the £123billion banking giant and cut costs would divide it into four.

Two divisions will be standalone UK and Hong Kong operations. Another will consist of corporate and institutional banking. A fourth will cover international wealth and premier banking.

Cutting costs: New HSBC boss Georges Elhedery (pictured) said the plan to ‘simplify’ the £123bn banking giant and cut costs would divide it into four

Businesses within those divisions will fall into either eastern markets, including the Asia-Pacific region and the Middle East, or western markets, including the UK, Europe and the Americas.

Elhedery said: ‘The new structure will result in a simpler, more dynamic, and agile organisation as we focus on executing against our strategy priorities, which remain unchanged.’

The bank was founded in Hong Kong and still makes most of its profits in Asia but after taking over Britain’s Midland Bank in 1992, it relocated its headquarters to London. It is listed in both London and Hong Kong.

Lebanese-born Elhedery, 50, took over last month after Noel Quinn, a veteran of the old Midland Bank, retired.

Chinese insurance giant Ping An, one of the bank’s biggest shareholders, has been lobbying HSBC to separate its Asian business. Shareholders rejected the move last year.

Susannah Streeter, head of money and markets at investment platform Hargreaves Lansdown, said cost-cutting is the ‘big driver’ of the changes announced yesterday.

Russ Mould, investment director at broker AJ Bell, said: ‘The creation of a new international wealth and premier banking division signals HSBC’s intent to be the bank of choice for the rich.’

HSBC also yesterday named its first female finance chief in its 159-year history as it promoted Pam Kaur, 60, who has been with the bank for more than a decade. Shares rose 0,9 per cent, or 6.1p, to 681.5p.