HSBC is reshaping its global banking and markets (GBM) division which delivers approximately a third of the groups profits with the creation of a new client coverage team, led by Robin Phillips, the divisions Asia head and head of global banking.
The move, effective from August 12 which wont affect headcount or product offering is aimed at further leveraging the banks client relationships in a business group that contains HSBCs investment banking arm as well as wholesale banking capabilities, including custody services.
|Samir Assaf, the CEO of HSBCs GBM group|
In effect, the new structure makes client coverage product agnostic. Aside from Phillips team, the two previous co-heads of global markets will take on more specific, new roles that play to their strengths.
Jose-Luis Guerrero becomes head of the markets business, which puts him in charge of all of HSBCs secondary markets businesses.
Spencer Lake heads the new capital financing group, incorporating HSBCs primary markets business across debt, equity and M&A.
An internal memo, seen by Euromoney and sent by Samir Assaf, the CEO of HSBCs GBM group, states: We are separating product from coverage to create a client coverage team that is product neutral and responsible for delivering global banking and markets to clients.
Capital financing will house the primary products that clients need to support their capital structure, as Basel III encourages a shift towards more capital markets-based financing models.
Meanwhile, the markets division will be responsible for the sales and trading businesses and the secondary market operations.
Phillips, who will deputize for Assaf, will return to London, with a replacement as head of Asia banking and markets to be announced in due course.
Kevin Adeson will be appointed vice-chairman of GBM, focusing on client relationships and growth initiatives. The credit and lending teams will report to the respective client coverage and capital financing teams.
|HSBC's Mohammad Al Tuwaijri|
HSBC has been a consistent top performer in the non-US global debt markets, and is gradually building a considerable equity and M&A business.
The new structure will also play well to HSBCs risk advisory and finance business, which is becoming one of the firms core strengths, thanks to the breadth and depth of the financing options the bank can provide to clients.
Patrick Nolan and Mohammad Al Tuwaijri will remain respective heads of GBM in the Americas and MENA.
A source close to the changes said roles and reporting lines beneath the top-level reorganization would be largely unchanged.