The banking group said the changes will remove overlap of roles and make it more nimble and efficient.

London/Hong Kong-listed HSBC is restructuring its business lines into four business units, including a new entity called international wealth and premier banking, it announced today. It also named a new chief financial officer.

The changes, come as new group CEO Georges Elhedery imposes his stamp on a business that today earns the bulk of its revenues outside the UK, such as in Asia. Prior to the changes, which take effect from the start of January next year, the divisions had been wealth and personal banking; commercial banking; global banking and markets, and the corporate centre.

The bank is to be split into the following business segments: Hong Kong; UK; corporate and institutional banking; and the aforementioned international wealth and premier banking arms, it said in a statement.

The bank said the changes will reduce duplication of processes and decision-making in the existing structure.

HSBC will issue its third-quarter financial results on 29 October. For the first half of this year, the bank reported a pre-tax profit, on a reported basis, of $21.6 billion, versus $21.7 billion a year before.

“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,” Elhedery said. “Our home markets of the UK and Hong Kong, together with our corporate and institutional banking as well as our wealth and Premier banking businesses, are the core strengths of HSBC.”

“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.”

CFO
HSBC also appointed Pam Kaur as its new group chief financial officer, effective 1 January.

Kaur, who joined the bank in April 2013 as group head of audit, is group chief risk and compliance officer, and has almost four decades’ experience having worked in the UK and the US for British, American and German Banks. Kaur is a qualified accountant. 

Jon Bingham, interim GCFO, will resume his role of group financial controller, HSBC said.

Wealth
In the international wealth and premier banking arm, HSBC said it will bring together the group’s premier banking-focused businesses outside of Hong Kong and the UK, its global private bank, and its wealth manufacturing businesses, asset management and insurance.

“One of our greatest strategic growth opportunities is in international wealth – particularly in Asia and the Middle East, capitalising on our established brand and heritage,” it said. 

The bank said that this business will be led by Barry O’Byrne, who is currently CEO of HSBC's wealth and personal banking business.

Other divisions

Hong Kong
The new "Hong Kong business" will comprise "personal banking" and "commercial banking" under the business oversight of David Liao and Surendra Rosha at the group operating committee, for both HSBC as well as Hang Seng Bank.

UK
The new "UK business" will comprise UK "personal banking" (including First Direct and M&S Bank) and UK "commercial banking," including innovation banking under the sole business oversight of Ian Stuart.

Corporate and institutional 
HSBC is creating a new business by integrating its commercial banking business (outside the UK and Hong Kong) with its global banking and markets business and with the geographic region of the Western Markets (comprising its UK non-ring-fenced bank, Europe, and the Americas), which is a predominantly wholesale banking region.

This division will be led by Michael Roberts.