HSBC appoints cross-bank leaders after Hang Seng privatisation, source says

By Selena Li

HONG KONG, July 22 (Reuters) - HSBC has appointed cross-bank leaders to oversee seven corporate functions it has in common with Hang Seng Bank, which it took private last year, according to a source familiar with the matter, in an effort to drive efficiency.

Corporate communication, company secretarial and corporate governance, risk and compliance, information technology, internal audit, finance, and the chief operating officer functions will now each have a single leader for both banks, according to the source.

However, each of the bank's teams for those functions will operate independently, instead of merging, the source said. Sing Tao, a Hong Kong newspaper, had reported on Tuesday that HSBC was merging the teams.

Under the changes, one of the heads of each function at the two banks has been elevated to sole leader, reporting directly to regional and global management, the source said. The changes happened in recent weeks.

The appointments mark the biggest restructuring effort by the two lenders and underscores HSBC's push to integrate Hang Seng Bank following last year's privatisation.

"The new leaders will explore opportunities for greater collaboration and alignment across the two banks," an HSBC spokesperson said, adding the privatisation would allow the group to scale the banks' capabilities more efficiently.

HSBC took Hang Seng Bank private last year, consolidating its control over the Hong Kong lender amid Hang Seng's worsening bad debt and as part of a broader group effort to simplify its corporate structure and boost operational efficiency.    

(Reporting by Selena Li: Editing by Neil Fullick)