HSBC names first female chief financial officer, unveils a major overhaul

Hong Kong/London — HSBC said Tuesday that it would combine some of its commercial and investment banking operations in a major overhaul under its new CEO, which will see it cut costs while trying to improve returns.

A new leadership structure, which includes the appointment of Pam Kaur as the lender’s first female chief financial officer, would “unleash our full potential and drive success into the future,” CEO Georges Elhedery said in a memo to staff.

The group is carving up its operations into four business lines, namely UK, Hong Kong, corporate and institutional banking, and wealth banking.

The overhaul sees Elhedery tackle one of HSBC’s most intractable problems.

Its commercial bank, which serves the lender’s more than 1.2 million business customers from startups to major corporations, has long held the potential to turbocharge profit if those customers could be persuaded to buy more products.

By combining that unit with HSBC’s investment banking division — except in Hong Kong and the United Kingdom — into the new corporate and institutional division, Elhedery hopes to drive closer cooperation and deliver on the lender’s recent publicly stated focus to cross-sell more products to internationally focused customers.

HSBC (HSBC) did not say what the projected cost savings might be or indicate how many jobs would be affected, but more details could emerge when the bank reports third-quarter results on October 29.

HSBC, which employs about 214,000 people globally, has been removing duplicate roles for years and reducing its businesses in Western markets such as the United States, France and Canada as it focuses on Asia and markets where it has scale.

One of HSBC's many branches in Hong Kong pictured on February