HSBC planning major revamp

THE City will be scouring HSBC’s first quarter results this week for clues on the measures in its major strategy overhaul that will be announced next month.

The bank faces a string of question marks including the future of its UK high street operations, whether it will keep its headquarters in London and the prospect of further multi- million pound write-offs to cover penalties for foreign exchange rigging and other bad behaviour.

Chief executive Stuart Gulliver is holding a ‘strategy day’ on June 9 when he is expected to reveal a radical re-think that could involve re- branding the UK high street operations as the Midland and floating them on the stock market or putting them up for sale.

The bank recently said it is reviewing its UK domicile for the first time in five years, a move that could lead to it shifting its HQ out of the country. Gulliver is also look- ing closely at problem businesses in Brazil, Mexico, Turkey and the US. He has said they have one to two years to prove their worth before ‘more extreme measures’, that could include sell- offs, are considered.

HSBC i s revamping i ts board and is seeking a new senior non-executive who will eventually replace chairman Douglas Flint.

Veteran non-executive Rona Fairhead, who receives more than £500,000 a year from HSBC in addition to chairing the BBC Trust, will serve no more than another year on the board.

The bank has been hit by a string of scandals including money laundering for Mexican drug barons and helping wealthy Swiss bank clients avoid tax.

It has paid multi-million pound fines to US and UK regulators over rigging the foreign exchange market but may be forced to set aside more this week.