On Tuesday, HSBC unveiled a new organizational structure aimed at streamlining operations and accelerating the execution of its strategic goals to deliver the "next phase of growth" under new Group Chief Executive Georges Elhedery. Effective January 1, 2025, the British lender will operate under four key businesses: Hong Kong, UK, Corporate and Institutional Banking, and International Wealth and Premier Banking.
The revamp aims to reduce the duplication of processes and boost agility, allowing HSBC to concentrate more effectively on its core markets and growth areas. The bank's new Hong Kong unit will oversee personal and commercial banking operations to strengthen HSBC's leading position in the home market.
Meanwhile, the UK ring-fenced bank will house personal banking, including First Direct and M&S Bank, along with commercial and innovation banking operations. HSBC's Corporate and Institutional Banking unit will merge commercial banking operations outside Hong Kong and the UK with its global banking and markets division, as well as Western markets including Europe, the Americas, and the UK non-ring-fenced bank.
Moreover, the new International Wealth and Premier Banking unit will integrate Premier banking services outside Hong Kong and the UK with the Global Private Bank, asset management, and insurance divisions. In terms of geography, HSBC will consolidate operations in the Asia-Pacific and Middle East regions under the Eastern Markets umbrella.
The Western Markets segment, on the other hand, will include the non-ring-fenced bank in the UK, Continental Europe, and the Americas. Additionally, the bank will replace its existing 18-member group executive committee with an operating committee of 12 members, which will serve as the primary decision-making body for the organization. "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," Elhedery commented. Shares were marginally down in London on Tuesday morning.
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