Historic leadership change and new business strategy shake up HSBC's global operations
HSBC has overhauled its business structure aimed at streamlining the bank’s global activities and cutting costs alongside a historic leadership appointment.
The bank revealed plans to streamline its global operations by dividing them into eastern and western markets, in response to geopolitical tensions and the need to improve cost efficiency.
HSBC has also appointed Kalpana Kaur (pictured) as its new chief financial officer, the first woman to hold the position in the bank’s 159-year history.
"The new structure will result in a simpler, more dynamic, and agile organization as we focus on executing against our strategic priorities, which remain unchanged," said HSBC’s new CEO, Georges Elhedery.
As part of the overhaul, the bank’s global operations will be divided into four core units, with business falling under either "eastern markets" or "western markets." The eastern division will focus on Asia-Pacific and the Middle East, while the western markets will include the UK, continental Europe, and the Americas.
HSBC’s commercial and institutional banking operations will be merged, while a new "international wealth and premier banking" division will cater specifically to high-net-worth individuals.
"The creation of a new international wealth and premier banking division signals HSBC’s intent to be the bank of choice for the rich," AJ Bell investment director Russ Mould told BBC. He also highlighted the importance of the Middle East as a key opportunity for growth, given the region’s significant wealth.
HSBC’s leadership has also undergone a reshuffle. Kaur, currently the bank’s chief risk and compliance officer, will step into the role of CFO in 2025. She will also become an executive director on the bank’s board, pending election at the next annual general meeting.
Kaur has been with HSBC for over a decade and her appointment is seen as a groundbreaking moment for the bank’s leadership.
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In addition to the changes in its global operations, HSBC has been expanding its presence in Canada, particularly in the private wealth management sector. Nader Guirguis, CEO of HSBC Private Wealth Services (Canada), said the bank plans to double the size of its Canadian private client business in the coming years.
“[Canada] is attractive to us, as it’s a low-risk environment with a stable economy that is attracting wealth and quality immigrants from around the world,” Guirguis said.
HSBC Canada, which entered the market in 1981, has steadily grown its presence through acquisitions, including Lloyds Bank Canada and Barclays Bank Canada. Today, it is the largest foreign-owned bank in the country, with a focus on expanding its wealth management services in key cities like Vancouver, Calgary, Toronto, and Montreal.
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