HSBC integrates seven departments in HK after taking Hang Seng Bank private: report

HSBC (0005) is integrating seven functional departments across the Hongkong and Shanghai Banking Corporation and Hang Seng Bank in a major restructuring that places Hang Seng executives in charge of the majority of the consolidated units, according to Sing Tao Daily, The Standard’s sister publication.

Under the new arrangement, a single department head will oversee operations for both lenders and report directly to the group’s upper management regarding the Hong Kong market, the newspaper said, citing sources.

In a subtle but significant shift that breaks from the traditional perception of Hang Seng taking orders from HSBC, six of the seven integrated departments will be led by Hang Seng executives, Sing Tao said.

This dictates that the original HSBC department heads will now report to their Hang Seng counterparts, it said.

The integration of middle- and back-office support functions to streamline its corporate structure in the Hong Kong market was initiated following the HK$106 billion privatization of Hang Seng Bank earlier this year. 

The integration involves seven key functional departments: corporate communications, company secretarial and corporate governance, risk and compliance, information technology, internal audit, finance, and the chief operating office, the report said. 

The chief operating office is the sole department among the seven to be led by an HSBC executive, a move that coincides with the retirement of Hang Seng's COO head, Vivien Chiu Wai-man, it said.

While Hang Seng executives have emerged as the primary leaders in these new appointments, the report said that several of these individuals were originally seconded from HSBC to Hang Seng.

In a response to Sing Tao, an HSBC spokesperson stated that the group is committed to serving Hong Kong through its two iconic banks, adding that the privatization of Hang Seng Bank will enhance overall capabilities, drive growth, and better serve both existing and new customers.

The newly appointed leadership teams will explore opportunities to strengthen cooperation and coordination between the two banks, leveraging their combined strengths to serve clients more efficiently, the spokesperson added.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓