HSBC's Chief Executive will retire soon

 

HSBC's Chief Executive, Noel Quinn, has unexpectedly announced his retirement after nearly five years in the role. The 62-year-old will remain in the position until a successor is found, with the bank considering candidates from both inside and outside the firm.

Quinn's departure comes as HSBC reports a 1.8% drop in profit for the first quarter of 2024, with pre-tax profits reaching $12.7 billion. Despite this, the bank's performance was slightly better than expected by market analysts.

In a statement, Quinn said, "After an intense five years, it is now the right time for me to get a better balance between my personal and business life." Quinn has worked at HSBC for 37 years and was first appointed as interim CEO in 2019, before taking the role permanently in 2020.

HSBC's chairman, Mark Tucker, praised Quinn's leadership, saying, "He has driven both our transformation strategy and created a simpler, more focused business that delivers higher returns."

Alongside its quarterly results, the bank announced an interim dividend of $0.10 per share and plans to buy back up to $3 billion of its shares. HSBC has recently completed the sale of its Canadian operations and announced plans to do the same with its Argentine business, as part of its efforts to focus on faster-growing markets in Asia.

Shanti Kelemen, chief investment officer at M&G Wealth, commented on Quinn's departure, saying, "It has probably been a very intense five years" and that Quinn "has had a very long career." Kelemen noted that Quinn has made significant changes to the bank during his tenure, including selling off businesses in Argentina and Canada, and increasing operations in Asia. She added that Quinn's legacy will likely shape the bank's success for years to come.

The search for a new CEO is underway, with the bank considering both internal and external candidates. The new CEO will inherit a bank that has undergone significant transformation under Quinn's leadership, and will be tasked with navigating the challenges of the global banking landscape.