HSBC is separating its structure into four businesses in order to “accelerate delivery against its strategic priorities”, according to a London Stock Exchange announcement published today (22 October).
From the 1 January next year, HSBC will serve as an umbrella company for four separate businesses: UK, Hong Kong, Corporate and Institutional Banking, and International Wealth and Premier Banking.
The changes have been made to “reduce the duplication of processes and decision making that are built into the current structure”, according to the firm, with the group confirming that its functions will be “realigned” to support the new businesses in due course.
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In terms of the UK, HSBC said its bank has a leading market position within the home market, and will therefore remain “a critical pillar of [its] strategy”. The business will comprise personal banking – including First Direct and M&A – and UK commercial banking. The business will be overseen by Ian Stuart.
The Hong Kong business will adopt a similar strategy of comprising both personal banking and commercial banking, to be overseen by David Liao and Surendra Rosha.
Meanwhile the Corporate and Institutional Banking business will be created by combining HSBC’s commercial banking business outside of the UK and Hong Kong, with its global banking and markets business across continental Europe and the US. This will be led by Michael Roberts.
Finally, the new International Wealth and Premier Banking business will combine HSBC’s premier banking businesses outside of the UK and Hong Kong, as well as its global private bank, wealth manufacturing business, asset management and insurance arms. This will be headed up by Barry O’Byrne.
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Georges Elhedery, HSBC group chief executive officer, 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.
“By making these changes, we can better focus on increasing leadership and market share in those businesses which have clear competitive advantage and the greatest opportunities to grow.
“This is how we will fast forward our plans to execute our strategy, unleash the full potential of the bank and ensure our talented colleagues can thrive, and deliver best in class products and service excellence, for our customers. When our customers succeed, so do we.”
