18th May 2006 17:45
HSBC Holdings PLC18 May 2006 SENIOR MANAGEMENT CHANGES AT CORPORATE, INVESTMENT BANKING AND MARKETS HSBC today announced that Stuart Gulliver is to assume sole responsibility forthe Group's Corporate, Investment Banking and Markets (CIBM) businesses withimmediate effect. Stuart will also assume responsibility for HSBC's GroupInvestment Businesses. HSBC has made significant progress developing its CIBM businesses in the lastthree years under the joint leadership of Stuart Gulliver and John Studzinski.With the investment phase nearly complete, CIBM's pre-tax profits of US$5.2billion in 2005 represented a quarter of the Group's profits worldwide. Thebusiness has clear momentum and has reached a level of development that makes itappropriate to fully integrate these businesses under the sole leadership ofStuart Gulliver. As Head of CIBM, Stuart takes over the global banking responsibilities of JohnStudzinski, who is leaving HSBC later this year to become a senior managingdirector and partner with the Blackstone Group, the global investment andadvisory firm. Alain Dromer, CEO of HSBC's Group Investment Businesses, willalso report directly to Stuart. Stuart Gulliver said: "We have achieved significant momentum in M&A and equitycapital markets over the last three years. These areas are essentialcompetencies for a Group of our size with significant relationships withfinancial institutions and corporates around the globe. The linkages with ourGlobal Markets business, including equities, and with our financing platform areproven, and M&A and ECM will remain a priority for me. "With our Group Investment Businesses, HSBC has already put in place a clear andambitious strategy for growing this area with all customers worldwide. Earlyresults are very encouraging. I fully support Alain and his team in driving thisfast-growing business forward." John Studzinski will focus on client work until he leaves HSBC on 30 September2006. After that date, he will continue his professional relationship with HSBCin the form of an advisor to HSBC's senior management. Joining the Blackstone Group in the autumn, John will be on the firm's executivecommittee and will have a global business role, dividing his time principallybetween London and New York. John Studzinski said: "This is a big and exciting change I have thought about alot. The opportunity to work in the very different environment of a smaller,private partnership, which at the same time offers all the challenges of ahugely successful global business, was something I found irresistiblyattractive. "The decision to leave HSBC has been made easier by knowing that the investmentbank is really beginning to show what it is capable of, with a strong coreoperation currently involved in four of the biggest M&A transactions in Europe.All the reasons that encouraged me to join HSBC in the first place - its brand,network and emerging markets franchise - are even stronger today, so theinvestment bank can look to the future with confidence." Explaining the new structure, Stephen Green, Group Chief Executive of HSBC,said: "We embarked on our five year strategic plan for CIBM in 2003, and thebusiness is clearly gaining momentum. The success of our strategy wasdemonstrated in 2005 earnings growth across several key product areas. "We have established a leading position in foreign exchange, transactionbanking, project and export finance and in funds administration. The investmentbanking business is gaining traction and has secured advisory roles in severallandmark transactions this year, building on the progress achieved in 2005. "The major investment phase of building our investment banking business isalmost complete. John's contribution over the last three years has been immenseand we will continue to enjoy the benefit of his advice at a senior level. As wemove the business forward, it is appropriate to fully integrate the managementand in Stuart we have a world class professional to lead it. "Building our corporate, investment banking and markets business remains anabsolutely core component of our global growth strategy." Notes to editors: 1. CIBMHSBC Corporate, Investment Banking and Markets provides tailored financialproducts and services to major government, corporate and institutional clients.Within client-focused business lines, Global Banking, Global Markets and GlobalTransaction Banking, CIBM offers a full range of capabilities, including foreignexchange, fixed income, equity sales and trading, equity and debt capitalmarkets, derivatives, risk advisory, investment banking, payments and cashmanagement, trade services and securities services. For more information onCIBM, please visit www.cibm.hsbc.com. 2. HSBC Holdings plcHSBC Holdings plc serves over 125 million customers worldwide through some 9,500offices in 76 countries and territories in Europe, the Asia-Pacific region, theAmericas, the Middle East and Africa. With assets of US$1,502 billion at 31December 2005, HSBC is one of the world's largest banking and financial servicesorganisations. HSBC is marketed worldwide as 'the world's local bank'. 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