CEO steps down after overseeing restructuring and profitability gains
HSBC’s chief executive, Noel Quinn, is set to retire after a five-year stint leading the global bank through extensive restructuring and asset sales around the world.
HSBC said Tuesday that it is now on the hunt for Quinn’s replacement, with chief financial officer Georges Elhedery being touted as the front-runner for the position.
During his tenure, Quinn, 62, has managed to rejuvenate HSBC's financial performance despite some challenges.
The bank reported a slight dip in its pre-tax profits for the first quarter of 2024, down from $12.9 billion in Q1 2023 to $12.7 billion in Q1 2024. This includes $4.8 billion from the sale of its Canadian operations, offset by a $1.1 billion impairment. Meanwhile, after-tax profits also slightly declined to $10,837 million from $11,026 million year-over-year.
The bank's shares have climbed roughly 30% under Quinn's watch, with a further increase of about 1.3% following the news of his departure.
Read more: HSBC profits sink in Q4
Quinn, who took over as CEO in an interim role during the pandemic restructuring in 2020, said it was "a natural inflection point" for new leadership as HSBC's transformation phase nears completion.
"I’ve held intensive leadership roles since I took on a commercial bank role in October 2008, so I’m personally ready for a change," Quinn said in HSBC’s earnings call. "It’s also a natural inflection point for the bank as it comes to the end of the current transformation phase. It’s an ideal time to bring in leadership to move the bank forward over the next five years."
HSBC Chairman Mark Tucker said they aim to complete the succession process by the second half of 2024.
According to Tucker, Quinn informed him of his decision earlier this month and that it was Quinn’s own choice, which was supported unanimously by the board. Quinn will remain in his position until a new CEO takes over.
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