HSBC CEO Noel Quinn to Retire, Georges Elhedery Tipped as Successor amid Asset Sales and Profit Gains

Hong Kong – HSBC has revealed that its CEO Noel Quinn will be retiring, a surprising departure by the hard-nosed leader who has overseen an extensive series of asset sales across the globe during his five years at the helm. The bank announced on Tuesday that it had initiated a formal process to find a successor for Quinn’s position. CFO Georges Elhedery is widely speculated as the leading internal candidate, having been appointed in January 2023.
Under Quinn’s leadership, HSBC has reduced its portfolio by getting rid of or cutting back on underperforming businesses including US retail banking operations and French subsidiaries, Canadian assets, and smaller markets such as Argentina. The bank’s shares have risen approximately 30% during his tenure, with the CEO planning to retire once a successor is found for him in the second half of this year. Quinn informed Chairman Mark Tucker earlier this month about his decision to step down; however, he added that it was entirely his own choice and that the board supported it wholeheartedly. HSBC Chairperson also commented that it was an appropriate juncture to bring a new leader onboard as the bank concludes its current transformation phase. Quinn joined the bank in 1987 and took over temporarily after John Flint’s departure, eventually becoming CEO officially during March 2020. During his tenure at HSBC, he navigated various challenges posed by COVID-19 pandemic and heightened geopolitical tensions between Western countries and China. Additionally, Quinn emerged victorious in a significant showdown with Ping An Insurance Group Co., the bank’s principal Chinese shareholder which unsuccessfully lobbied to break up its Asia unit since 2018. HSBC reported pretax profits of $12.7 billion for Q1 2023, slightly higher than forecasted figures in comparison with a year ago when it was worth $12.9 billion. The bank also announced an additional $3bn share buyback on top of the previously declared $2bn stock repurchase program revealed last February.