HSBC said on 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, reports CNN.
The bank also announced a new leadership structure, which includes the appointment of Pam Kaur as the lender’s first female chief financial officer. The move is expected to “unleash our full potential and drive success into the future,” CEO Georges Elhedery said in a memo to staff.
Kaur, 60, steps into the role of CFO after previously serving as HSBC’s chief risk and compliance officer. She joined the bank in April 2013, initially taking on the position of group head of internal audit.
The group is restructuring its operations into four distinct business divisions: UK, Hong Kong, corporate and institutional banking, and wealth management.
The restructuring puts Elhedery in a position to address one of HSBC’s most persistent challenges. HSBC’s commercial bank, which caters to over 1.2 million business clients ranging from startups to large corporations, has consistently had the potential to significantly boost profits if these customers could be encouraged to purchase additional products.
By merging this unit with HSBC’s investment banking division—excluding Hong Kong and the United Kingdom—into the newly formed corporate and institutional division, Elhedery aims to foster greater collaboration and fulfill the bank’s recent commitment to increase cross-selling opportunities for its internationally oriented clients.
