据悉，此次为汇丰十年来最大规模的组织架构重组。具体而言：HSBC's global business integration is divided into four main business segments: Hong Kong business, United Kingdom business, corporate and institutional wealth management, international wealth management, and premier wealth management, effective next year. Some analysts believe that as central banks around the world begin to cut interest rates, large banks face profit pressure and have to take cost-cutting measures to maintain operations.
Big moves within hsbc holdings!
On Tuesday, hsbc holdings announced that it will optimize its organizational structure. The company has decided that starting from January 1, 2025, it will integrate its global business into four main core businesses: Hong Kong business, United Kingdom business, corporate and institutional banking, international wealth management, and premier banking.
It is reported that this is the largest organizational restructuring for hsbc in the past decade. Specifically:
The businesses in China, Hong Kong, and the United Kingdom will be split into separate parts, while the commercial and institutional banking businesses outside of these two will be merged into a new department.
Two new regional departments will be established: the Eastern Regional Department covering the Asian and Middle Eastern markets, led by David Liao and Surendra Rosha; the Western Regional Department covering the UK and Europe markets, along with corporate and institutional banking, will be overseen by Michael Roberts.
The new international wealth and premier banking business will involve hsbc's high-quality banking operations outside of China, Hong Kong, and the UK, as well as private banking, asset management, and insurance businesses, led by Barry O'Byrne.
The 18-member 'executive committee' is reorganized into a 12-member 'operating committee'.
HSBC Holdings CEO Georges Elhedery stated:
"The new structure will bring a simpler, more dynamic, and agile organization, as we focus on executing our strategic priorities, which remain unchanged."
The statement also mentioned that HSBC will appoint Pam Kaur as its new Chief Financial Officer, making her the first female CFO in the group's history.
As part of the restructuring plan, some key executives including Stephen Moss, Head of Middle East and North Africa business, and Colin Bell, Head of HR for Europe, will also depart.
Trend of cost reduction among large banks?
In early September this year, Elhedery (who has been the Group Chief Financial Officer since early 2023) was appointed as the new CEO of HSBC Holdings, succeeding Noel Quinn.
After taking office, Elhedery initiated a series of aggressive cost-cutting measures, with plans to reduce costs possibly up to $2 billion as revealed by Bloomberg earlier. Elhedery also plans a cost reduction of $0.3 billion targeting senior bankers, as reported by the Financial Times.
Some analysts suggest that as central banks worldwide begin to lower interest rates, large banks are under profit pressure and have to take cost-cutting measures to sustain operations.
Last year, as one of HSBC's competitors, Citigroup also chose to restructure its business on a large scale, with as many as 0.02 million employees being laid off.
Some analysts also point out that HSBC may incur restructuring costs when implementing certain changes. These costs are estimated to be as high as $0.1 billion to "low tens of billions of dollars".
In recent years, HSBC has accelerated the pace of shifting its business focus to Asia, while tightening its operations in Western markets such as the USA, Canada, and France, as Asia is currently the main source of profit for the group.
