On Tuesday, HSBC announced the retirement of Chief Executive Noel Quinn. This unexpected move comes after five years, during which Quinn oversaw a massive asset sale program worldwide as the firm’s tough boss.
The bank announced that it has started an official search for a replacement.
Quinn, according to a statement from the bank, has volunteered to stay available until the end of his 12-month notice term. This term expires on April 30, 2025, to help facilitate the transition. Quinn will continue to serve as CEO until his successor begins in the position.
Georges Elhedery, the chief financial officer, led the bank’s markets division before taking a leave of absence. He was elevated to the No. 2 position in January of last year, making him the top internal applicant for the position.
“After an intense five years, it is now the right time for me to get a better balance between my personal and business life. I intend to pursue a portfolio career going forward,” Quinn said.
During the afternoon session in Hong Kong, HSBC shares increased by approximately 0.4% and reached a nine-month high.
Quinn, who began working for HSBC in 1987, was appointed CEO in March 2020. The bank, which derives the majority of its profits and sales from Asia, had previously employed Quinn as an interim CEO after his predecessor was abruptly fired.
He managed difficulties during and after the coronavirus pandemic. He also helped the bank navigate through increased geopolitical tensions that affected its main market, China.
Improving returns for shareholders was one of Quinn’s top priorities upon taking over. He reduced the bank’s presence in unprofitable areas, announced layoffs, and intensified the bank’s Asia pivot strategy. He did this to streamline operations and focus on more lucrative markets.
Over his tenure, the bank’s shares have increased by almost 30%.
Pretax profit for HSBC’s quarter ending in March was $12.7 billion, down from $12.9 billion a year earlier. The bank battles to keep up with mounting costs from its growth into Asia and the pressure of inflation.
The outcomes exceeded the $12.6 billion mean of HSBC’s experts’ projections.
Additionally, the bank, headquartered in London, recently announced $3 billion in share buybacks, following the $2 billion in share purchases announced in February.
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