HSBC in East-West split as part of major overhaul

Boss Georges Elhedery says global institution will be divided geographically into four separate units

HSBC announced it will also merge its commercial and institutional banking units. Reuters

HSBC on Tuesday unveiled a significant restructuring of its business, under which the global bank will be arranged along geographical lines and under four operational units instead of the current three.

The bank is simplifying its global structure, essentially splitting itself into eastern markets, incorporating Asia and the Middle East, and western ones, made up of the business in the UK, Europe and the Americas. HSBC is based in London but most of its profits originate in Asia.

HSBC's new chief executive, Lebanon-born Georges Elhedery, also announced that it will merge its commercial and institutional banking units, while creating a new international wealth and premier banking division.

"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," Mr Elhedery said on Tuesday. "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."

HSBC is also undertaking a shake-up of senior management, with the appointment of Pam Kaur as the lender's first female chief financial officer. Ms Kaur was HSBC's chief risk and compliance officer, having joined the bank 11 years ago as its head of internal audit.

Greg Guyett, the current chief executive of HSBC's Global Banking and Markets division, will become chairman of the new Strategic Clients Group. Colin Bell, HSBC's Europe head, who was once tipped as a potential candidate for the chief executive position, is to leave, along with Stephen Moss, boss of HSBC's Middle East unit.

HSBC employs about 214,000 people worldwide and has been reducing duplicate job positions for a number of years. It has also been shrinking its businesses in western markets such as the US, France and Canada, and focusing on Asia.