HSBC's new chief executive officer (CEO), Georges Elhedery, has announced a major overhaul of the bank's structure, splitting geographically into eastern and western markets amid increasing geopolitical tensions and a need to cut costs.
Under the plans, due to take effect in 2025, the bank will create separate business units in both the UK and Hong Kong.
The changes will simplify the bank's operations by splitting operations into four key units, which will see its commercial and institutional banking divisions merged, said HSBC.
Business in these operations will fall into either "eastern markets", which includes the Asia-Pacific region and the Middle East, or "western markets", covering the UK, continental Europe and the Americas.
In a statement, HSBC CEO, Georges Elhedery, said: "The changes will make it easier for our colleagues to serve our customers and drive the future success of the Group. 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.
"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," Elhedery added.
Bank appoints first female finance chief in its history
As part of the re-organisation, HSBC also announced the first ever female finance chief in the bank's 159-year history.
Pam Kau who is currently the chief risk and compliance officer, has worked for the bank for more than a decade.
Elhedery said the shake-up at the bank would help HSBC to "unleash our full potential and drive success into the future".
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