HSBC has announced it will restructure its business into four units, including the creation of a new international wealth and premier banking division.

The changes come following the appointment of its new CEO, Georges Elhedery, as it seeks to simplify its organisational structure to “accelerate delivery against its strategic priorities”.

From 1 January 2025, the company will operate through four businesses: Hong Kong, UK, corporate and institutional banking, and international wealth and premier banking.

HSBC described international wealth as one of its greatest strategic growth opportunities, particularly in Asia and the Middle East.

Its new international wealth and premier banking business will combine its premier banking-focused businesses outside of Hong Kong and the UK, its global private bank, and its wealth manufacturing businesses, asset management, and insurance.

The newly created unit will be led by Barry O’Byrne, while Pam Kaur has been appointed as the company’s chief financial officer.

Its new corporate and institutional banking business was created through the integration of its commercial banking business (outside of 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.

As part of the restructuring, HSBC is simplifying its geographical set up, with the ‘eastern markets’ bringing together the Asia-Pacific region and the Middle East region, while the ‘western markets’ will comprise the non-ring-fenced bank in the UK, its continental European business, and the Americas.

Commenting on the announcement, Elhedery said: "The changes that we are announcing today 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.

"I am excited about the opportunities ahead of us and firmly believe that this structure sets us up to deliver the next phase of growth. 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.”

Hargreaves Lansdown head of money and markets, Susannah Streeter, added: “The new CEO Georges Elhedery has moved swiftly to put his own corporate stamp on HSBC, with a restructuring drive which focuses on elevating the growth levers in the business.

"Second quarter revenues got a significant boost from the fees generated in its wealth business, so creating a new division to focus on high and ultra net worth accounts is aimed at capitalising on further potential that this area of the business promises.

“HSBC is long been on an Asian pivot, but it’s not gone far enough for a section of the investor base, who have wanted to see the business spin out its Asian operations. This has been repeatedly rebuffed, and with Mr Eldhedery maintaining that the bank’s strategic priorities remain unchanged, splitting its operations into eastern markets and western markets division does not seem to indicate that a hiving off is on the cards. Instead, cost-cutting is a big driver of these changes, with fresh efficiencies likely through the simplification of its geographical structures and the merger of its commercial and institutional banking operations.

“Pam Kaur is likely to be seen as a safe pair of hands as the new group CFO, given she’s been at the bank for more than a decade in numerous financial leadership roles.

“Shareholder reaction to these moves has been muted, with a shift in focus on wealth management largely expected, and the restructure of the senior management team not ruffling any feathers.”

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