HSBC announces overhaul of global structure as new boss looks to cut costs

This includes merging its commercial and institutional banking operations, and creating a new international wealth and premier banking division.

The other two units will be formed of a new UK business, and a Hong Kong business.

It is also set to restructure across geographic lines with the formation of “Eastern markets”, which incorporates Asia and the Middle East, and “Western markets”, comprising of the UK, Europe and Americas.

The changes are set to take effect from 2025.

It has previously been reported that the shake-up will lead to roles being axed among its high-paid top bankers, including across the large commercial and investment banking divisions.

The creation of Eastern and Western markets will also see previously standalone divisions, such as Europe and the Americas, come together under one chief executive.

Michael Roberts will lead both the corporate and institutional banking and the Western markets units.

Mr Elhedery, who took on the top job last month, said: “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.

“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.”

HSBC also announced a leadership reshuffle which included the appointment of Pam Kaur as its chief finance officer, reported to be the first woman to fill the role which was previously held by Mr Elhedery.

Ms Kaur first joined the banking group more than a decade ago.

The restructure will see the bank’s executive committee, which makes key decisions for the firm, cut down from 18 members to 12 members.

Mr Elhedery is said to be targeting cost-savings through the overhaul, thought to amount to up to $300m (£231m).

AJ Bell investment director Russ Mould said: “You can tell that Georges Elhedery likes things clean and tidy. The new boss of HSBC is making structural changes to the business so the group is primed and ready to grow under his leadership.

“His actions are akin to getting the house in order, clearing away clutter and putting things in the right place, before embarking on a new paint job and then thinking about expanding sideways or upwards.”