HSBC reorganizes CIBM division

HSBC, the world's third largest bank, has reorganized its corporate, investments and markets (CIBM) division into three new areas, according to a leaked internal memo.

The new structure sees CIBM transformed into global transactions, global banking and global markets.

There has been wide speculation that the bank's star deal-maker, John Studzinski, would be leaving CIBM to go into a more advisory position. However, according to the memo, he is to remain co-head of CIBM with Stuart Gulliver.

CIBM has had mixed results since it was created in 2002 and has been affected by increasing costs. Earnings for the division fell by 18 per cent in the first half of 2005.

David Williams, an analyst at Morgan Stanley, Mr Studzinski's old place of work, said: "They have to demonstrate they have depth and breadth to their product offering and that they can start to bring in deal, after deal, after deal."

On the creation of CIBM, spokespeople said they would need five years to make the investment banking operation a success.

HSBC announces its profits at the beginning of March and analysts are watching keenly for results on the bank's expansion into the US investment banking market.

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