HSBC Holdings PLC (LSE:HSBA) has reorganised its organisational structure into four businesses, slimmed down its group executive committee and appointed a new chief financial officer.
Geographically, management of HSBC will be split into 'Eastern Markets', made up of Asia Pacific plus the Middle East, and 'Western Markets', consisting of the UK non-ringfenced bank, Continental Europe and Americas.
Europe's largest bank said its operations will be split from three into four businesses: Hong Kong, UK, corporate & institutional banking, and international wealth & premier banking.
The creation of the corporate & institutional business results from a merger of the former commercial banking division and its global banking and markets unit, as reported earlier this month with one of its aims being to cut up to $300 million of costs.
New chief executive Georges Elhedery the former CFO who moved up to the top role last month, reportedly stressed in his first town hall staff meeting last month that cost control is a key priority as central banks begin to trim interest rates.
The operational changes announced today "will make it easier for our colleagues to serve our customers and drive the future success of the group", Elhedery said in a statement.
"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."
Elhedery said he believes the structure, with a more defined focus on personal and commercial banking in its "home markets" of the UK and Hong Kong as well as the "core strengths" of corporate banking and wealth for global clients, will enable the group to "better focus on increasing leadership and market share in those businesses which have clear competitive advantage and the greatest opportunities to grow".
The 18 members of the group executive committee will be replaced by a new group operating committee comprising 12 members.
His permanent replacement as CFO is Pam Kaur, who will move from her current role as group chief risk and compliance officer from the start of January.
The qualified chartered accountant has served on the group executive committee for over a decade.
Elhedery said: "We had a strong bench of internal and external candidates to choose from and Pam was the exceptional candidate to recommend to the board."