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HSBC has renamed its business sections “Eastern Markets” and “Western Markets” within a few months of their creation, as branded prompted renewed speculation that the bank could be officially divided along the East-West lines.
Bank is now calling the business of the Eastern markets “Asia and the Middle East” and the business of the Western markets “Europe and America”, two people with knowledge of the matter said. Is not changing the structure itself.
The “Eastern” and “western” sections were created as part of a widespread arrangement announced by HSBC Georges ELhedDery chief executive in October, within weeks of the beginning of the role.
The bank had previously divided its global footprint into five regions, and Elheddery said landing in two was a “bank simplification”.
But the measure fueled speculation that adjusting along the east-west lines was to lay the bases for a future division. The main shareholder of HSBC Ping An, a Chinese insurance group, in 2023 pressure on the bank to rotate its Asian operations – a proposal that was overthrown in a shareholder vote that year.
ELhedDery was forced to deny the idea that the bank was heading towards the allocation of its business, saying in October that the arrangement was not “neither a precursor, or preparation for any division”.
Some staff also raised concerns that the comprehensive “Eastern” and “Western” labels were inappropriate, especially at a time of increased geopolitical tension, said one of the people.
HSBC refused to comment beyond the story of a statement from ELHEDERY in October, in which he said the bank would “direct our geographical governance structures, reducing them from five regions to two, further increasing our ability to serve our clients throughout our global network”.
The “Eastern Markets” section covers the Asian region of Pacific and the Middle East, and is overseen by David Liao and Surendra Rosha. The “Western Markets” section covers the non-Ringfed UK Bank of HSBC, as well as Europe and America.
The simplified geographical division was introduced along with the creation of four new business lines: Hong Kong, the United Kingdom, the Banking of Corporations and Institutions and International Assets and the Banking Prime Minister.
Last month, HSBC revealed a goal of saving $ 300 million in 2025 and reducing $ 1.5bn from its annual cost base by the end of next year after detailing the impact of the adjustment for the first time.
The lender is also closing the main parts of its investment banking operation – merger and purchases of advisory labor, and its business market business – in the West.
The repair “raises and strengthens” the main fields of the bank such as its UK units and Hong Kong and its wealth business, ELhedDery said last month, adding that it had “eliminated large parts of our complex matrix governance structure”.
