HSBC’s Gulf Exits Prompt Bank to Bring in Dealmakers From the UK - Bloomberg

HSBC’s Gulf Exits Prompt Bank to Bring in Dealmakers From the UK - Bloomberg

HSBC Holdings Plc has relocated several managing directors from London to the Middle East, replenishing its ranks in a region earmarked as a priority under Chief Executive Officer Georges Elhedery.

The lender moved four London-based MD’s — Robin Brown, Ajay D’Souza, Simran Saggu and Khurram Islam — to the Gulf earlier this year, according to a person familiar with the matter, who asked not to be named as the information is private. It also hired an energy banker from Rothschild & Co. for a role in Saudi Arabia last month, the person said.

That came after oil and gas specialist Vishesh Arora and MD Parveen Garg left in recent months, people familiar with the matter said. Meanwhile, Jon Connor, a 21-year veteran and former co-head of Middle East investment banking, departed after relocating to London over the summer, some of the people said.

A spokesperson for HSBC declined to comment on the departures, but said the bank is adding staff to the region.

The reshuffle comes as competition for talent intensifies across the Gulf, where governments are deploying energy wealth to diversify their economies and spur deal activity. The region has become a priority for HSBC alongside Asia, with Elhedery shuttering the bank’s US and European advisory units to focus on faster-growing markets.

Those plans have been hampered by exits, including the recent departure of two senior bankers who advised on most of HSBC’s mandates for Middle East share sales.

Still, the bank has secured more than 25 new mandates for mergers and acquisitions and initial public offering across those markets since outlining its revised strategy, according to Samer Deghaili, co-head of capital markets and advisory for the Middle East, North Africa and Turkey.

HSBC will continue to invest in the region, including its top talent, he added. Earlier on Tuesday, HSBC said its investment bank obtained a regional headquarters license in Saudi Arabia, joining global rivals increasing their presence in the kingdom.

The Middle East has been a hub for equity issuance as governments drive privatizations to deepen local markets. Companies have raised over $5.8 billion from IPOs this year, though momentum is fading amid valuation concerns and renewed listing activity in the US and Asia.