HSBC Splits UK and Hong Kong Units in Overhaul; Names Pam Kaur First Female CFO

Oct 22, 2024, 06:49 AM

HSBC has announced a sweeping overhaul of its organizational structure, aiming to streamline operations and rein in costs amid a backdrop of falling interest rates. The bank will merge two of its largest businesses outside the UK and Hong Kong, creating a new corporate and institutional banking unit. This restructuring simplifies HSBC into four main business lines: UK, Hong Kong, corporate banking, and wealth banking, effectively separating its 'eastern' and 'western' operations. The bank is also splitting its UK and Hong Kong banking arms into two separate units, reflecting growing geopolitical tensions between China and the West. In a historic appointment marking a significant milestone in gender representation, HSBC named group veteran Pam Kaur as its first female Chief Financial Officer in its 159-year history, replacing Georges Elhedery, who became CEO earlier this year and is spearheading the transformation. Elhedery stated that the new leadership structure is designed "to unleash our full potential and drive success into the future."