HSBC Holdings Plc has initiated a significant restructuring across its business lines and regions, led by newly appointed CEO Georges Elhedery. This marks the bank's most extensive overhaul in over a decade, aimed at reducing costs amid global interest rate cuts.
The restructuring includes merging global commercial and institutional banking operations under Michael Roberts and creating a new international wealth and premier banking division overseen by Barry O'Byrne. Additionally, Pam Kaur has been appointed as chief financial officer, becoming the first female finance director in HSBC's 159-year history.
The changes will streamline the key operating committee from 18 to 12 executives. HSBC's reorganization will establish an Eastern regional unit encompassing Asia Pacific and the Middle East, alongside a Western market division covering the UK, Europe, and the Americas.
Several key executives, including Stephen Moss and Colin Bell, will exit as part of this restructuring. The bank may face restructuring charges estimated between $100 million to the low billions, with further details expected in February during the full-year results announcement.
Elhedery's appointment, effective last month, presents a challenge to demonstrate growth for Europe's largest bank. The merger of the commercial and institutional divisions concludes a longstanding debate within HSBC regarding the management of these critical sectors.