HSBC’s recent boss has announced a major overhaul of the lender’s structure, splitting geographically into eastern and western markets amid increasing geopolitical tensions and a require to cut costs.

The lender said that it was simplifying operations by splitting into four key units, which will view its commercial and institutional banking divisions merged.

The changes are set to receive result from 2025.

HSBC also announced a reshuffle in its leadership ranks, with the appointment of its first female finance chief in the lender’s 159-year history.

Its recent chief executive Georges Elhedery said he wants to “unleash our packed potential and drive achievement into the upcoming.”

Under the plans, the lender will make divide business units in the UK and Hong Kong.

There will also be two other operations: “corporate and institutional banking” and “international riches and premier banking”.

Business in these operations will fall into either “eastern markets”, which includes the Asia-Pacific region and the Middle East, or “western markets”, covering the UK, continental Europe and the Americas.

“The recent structure will outcome in a simpler, more dynamic, and agile organisation as we focus on executing against our strategic priorities, which remain unchanged,” Mr Elhedery said.

“The creation of a recent international riches and premier banking division signals HSBC’s intent to be the lender of selection for the wealthy,” said AJ Bell resource director Russ Mould.

He added that the Middle East is expected to be a “major chance for the throng given its significant riches and HSBC will desire to have people on the ground ready to serve.”

“By making these changes, we can better focus on increasing leadership and trade distribute in those businesses which have obvious competitive advantage and the greatest opportunities to develop,” Mr Elhedery suggested.

The newly-appointed Ms Kaur has worked at the lender for more than a decade and is currently its chief hazard and lawful operation officer.

As well as becoming HSBC’s chief financial officer, Ms Kaur will receive up the role of executive director of the board, which is subject to election at the firm’s next annual general conference.