HSBC reorganises to make Hong Kong a ‘top strategic priority’ in global banking business

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Bank says HSBC and Hang Seng will ‘remain very separate in the way they compete’ for business in the city

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Pedestrians passed an HSBC branch in Central. Photo: Yik Yeung-man

Enoch Yiu

Published: 1:35pm, 22 Oct 2024Updated: 8:27pm, 22 Oct 2024

HSBC Holdings will reorganise its worldwide operations into four business units and two geographic areas, as one of the world’s largest banks creates a structure that makes Hong Kong – the H in HSBC – the “top strategic priority” in its global network of 62 markets.

Effective January 1, the bank’s four business lines will be: Hong Kong, the UK, corporate and institutional banking, and wealth and premier banking. HSBC said it is pursuing the restructuring to achieve greater operational efficiency and growth, though it said the effort will lead to lay-offs.

For the Hong Kong business, the bank said HSBC and subsidiary Hang Seng Bank will “remain very separate in the way they compete” for business in the city. It said the Hong Kong unit of HSBC and Hang Seng will be governed by their local CEOs.

The lender, which is the largest bank in Hong Kong and Europe, also said it was appointing Pam Kaur, currently the chief risk and compliance officer, as its first female chief financial officer.

The moves are the first major actions after Georges Elhedery took over as group CEO from Noel Quinn on September 2. HSBC said Kaur is filling the vacancy that was left after Elhedery was promoted.

“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,” Elhedery said. “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.”