HSBC has kickstarted the search for a new chief executive after Noel Quinn shocked markets by revealing he would retire after an ‘intense’ five years.
Europe’s largest bank told investors on Tuesday that Quinn, 62, will remain in the role until a successor is found with a formal process now underway.
Quinn oversaw a sweeping global asset sales during his tenure, ridding the bank or slashing in size of underperforming businesses, including HSBC’s retail banking businesses in the US and France, its entire Canadian subsidiary and units in smaller markets such as Argentina.
Quin said on Tuesday: ‘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.’
Europe’s largest bank told investors on Tuesday that Quinn, 62, will remain in the role until a successor is found with a formal process now underway
HSBC shares were up 3.43 per cent to 691.00p in Tuesday morning trading, as the lender cushioned the news of Quinn’s surprise departure with strong profits and a bumper share buyback plan.
The Asia-focused bank reported a pre-tax profit of $12.7billion (around £10.1billion) for the quarter to March, slightly ahead of forecasts but down on the £10.3billion posted last year.
Following the completion of a $2billion buyback, which was announced back in February, the group said it plans to launch a fresh $3billion buyback after its annual general meeting next month.
The bank said it continued to target a return on average tangible equity in the ‘mid-teens’ for 2024, with banking net interest income of at least $41billion (around £32.7billion), dependent on the path of interest rates globally.
Quinn leaves big shoes to fill
Outgoing chief executive Quinn leaves a legacy of record profits and the strongest returns in over a decade.
This has mainly been achieved by offloading its loss-making retail banking networks in the US, France, its entire Canadian subsidiary and units in smaller markets such as Argentina.
Quinn’s restructuring of the lender saw HSBC cut 35,000 jobs amid a $4.5billion cost-cutting target.
He also led the reorientation of HSBC towards Asia, but successfully faced down shareholder Ping An’s demands for the bank carve out its Asian business.
Mark Tucker, group chairman at HSBC, said Quinn had a ‘long and distinguished 37-year career at the bank and we are very grateful for his significant contribution to the group over many years’.
He added: ‘He has driven our transformation strategy and created a simpler, more focused business that delivers higher returns.’
Tucker said the bank was aiming to complete Quinn’s succession process by the second half of this year.
Matt Britzman, equity analyst at Hargreaves Lansdown, said: ‘Change at the top usually causes a wobble, more so when it’s unexpected, and this does raise some questions about how the strategy will evolve from here.
‘The HSBC portfolio is going through a reshuffle, and Quin’s far from completing his mission to get costs under control.
‘He may be a hard act to follow, but market reaction suggests the strong position he leaves behind is enough to quell any uncertainty about who’ll lead the business from here.’
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