HSBC is preparing for another round of management musical chairs just a few months after making a set of senior changes in corporate and investment banking and markets (CIBM) coverage. Of the new changes, the most surprising is that Hong Kong veteran Michael Powell will follow Stuart Gulliver back to London to become head of global markets, Europe, and treasurer of HSBC Bank from July. Mark Bucknall, another experienced Hong Kong staffer, will also be reunited with his colleagues in London only seven months after he left Hong Kong for the US to become head of capital markets, Americas, and chief executive, HSBC Securities. Bucknall is set to become global head of debt finance and advisory, global markets, in another sign that HSBC has moved from autonomous regional management to a global approach. The bank announced a set of senior appointments across the globe and made Gulliver head of global markets in October. Since then, Stephen Green has taken over as group chief executive. Despite the additional restructuring, the reunification of the former Hong Kong bankers is consistent with HSBC's recent strategy. One reason why Gulliver was made head of global markets was to enable him to repeat his successes in Asia globally. "There is an opportunity now, while markets are low, to expand into new areas just as others are retreating," Powell told EuroWeek. "Stuart, Mark and I have always worked very well together as a team and we have proved that we can turn a business around. The Asian treasury and capital markets business from 1994 and 1995 was a very different operation to today." HSBC has set aggressive three and five year revenue and profit targets for the new global markets management. "We have set challenging performance targets for global markets," Gulliver told EuroWeek. "We don't disclose revenue and operating profit for the business but I can tell you we are aiming for a 50% rise in operating profit within three years from 2002. We will do that by focusing on clients, products and geographies, in that order, and I am confident there is considerable room for growth in each of those areas." Gulliver created Hong Kong's Asian fixed income and foreign exchange trading in 1994, and turned it into a profitable operation. Powell started in Hong Kong as head of interest rate trading in 1995 and has since been Gulliver's right-hand man in treasury and foreign exchange. "I have been doing a similar role for seven or eight years and it seemed a good time for a change and this role is an exciting new opportunity," Powell said. "From a treasury perspective there are many customers in Europe that we have not taken full advantage of yet. We will probably look to expand in both Mediterranean countries and other areas where we have established branches to begin with." Last year global markets made $3.72bn in pre-tax operating profit, and observers estimate that over 40% was from Asian operations, while Europe contributed just under 30%, and America the balance. With Powell moving from Hong Kong to London, Anita Fung and Paul Hand will fill his shoes as co-heads of global markets, Asia Pacific in July. Fung, who was previously head of Hong Kong trading, will also become treasurer, Asia Pacific, while Hand will retain his job as head of sales, Asia Pacific. Both report to Tony Rademeyer, head of CIBM, Asia Pacific, who has just started in Hong Kong, after previously being the treasurer for Europe. Despite all the recent staff moves from Hong Kong, Powell was sanguine about HSBC's future performance in the region: "Stuart and I have groomed Anita and Paul to take over from me for 12 months now, ever since it was obvious I was looking for a new role. Both of them are first class and Stuart runs the whole business, so can look at it too." In the US, HSBC has promoted Joseph Petri to be head of global markets, North America in Bucknall's place, in addition to his role of treasurer, North America, HSBC USA. Petri will continue reporting to Brian Robertson, head of CIMB, North America. All of the heads of global markets and Bucknall will also become members of a new global markets management committee chaired by Gulliver, with each reporting functionally to him. Observers said the new appointments in global markets are evidence of Stephen Green's expansion strategy. "Most people knew that Stephen was in the running for the succession and it meant that these moves, which had been relatively well planned, could press ahead," one banker said.
April 04, 2003
