Following its completion of the privatization of Hang Seng Bank earlier this year, HSBC Holdings PLC is now integrating seven functional departments across its Hong Kong operations and Hang Seng Bank to streamline its local structure.
Under the new arrangement, the relevant functions of the two banks will be overseen by a single head from one of the institutions. Reports indicate that for the majority of these departments, the leadership role will be assumed by executives from Hang Seng Bank. This means heads of the corresponding departments at HSBC will now report to their Hang Seng counterparts, reversing the previous dynamic where Hang Seng typically reported to HSBC.
The consolidation encompasses seven departments: Corporate Communications, Company Secretarial and Corporate Governance, Risk Monitoring and Compliance, Information Technology, Internal Audit, Finance, and the Chief Operating Officer function.
It is understood that the integration of middle and back-office support functions has recently commenced, with internal notifications regarding the new personnel appointments already issued to the relevant teams at both banks.
Reports detail that within the newly integrated structure, six of the seven functional departments will be led by Hang Seng executives as the senior-most leaders. These leaders will be responsible for directly reporting on their respective functions across both banks to group superiors. The original heads of these same departments at HSBC will subsequently report to the Hang Seng-appointed leaders.
The sole exception is the Chief Operating Officer function, which will be led by an HSBC executive. This is due to the retirement of Hang Seng's COO, Zhao Huiwen.
Further information suggests that while Hang Seng executives secured the majority of the new leadership appointments, some of these individuals were originally on secondment from HSBC to Hang Seng.
A spokesperson for HSBC stated that the group is committed to serving Hong Kong through its two banks. The privatization of Hang Seng Bank enhances overall capabilities, drives growth, and enables better service for both existing and new clients. The newly appointed leadership teams will explore opportunities to strengthen cooperation and coordination between the two banks, leveraging their combined strengths to serve customers more effectively.
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