HSBC says chief executive ‘to retire’

HONG KONG: Banking giant HSBC said on Tuesday that Chief Executive Officer (CEO) Noel Quinn would retire after overseeing a “successful transformation” of the firm and record profits during almost five years in charge.

The surprise news came as the lender reported that pretax profits in the first quarter fell by $200 million to $12.7 billion, while announcing a share buyback.

“During his tenure, HSBC has delivered record profits and the strongest returns in over a decade,” it announced in a Hong Kong stock exchange filing.

“He has successfully simplified and focused the bank, most recently with the sale of the Canada and Argentina operations and built a leading position on sustainability.”

The profit reflected a $4.8 billion gain after HSBC completed the sale of its Canada business, partly offset by a $1.1 billion impairment from the planned sale of its Argentina operations, the bank said.

“We completed the sale of our Canada business and agreed the sale of our Argentina business, both of which allow us to focus on markets with higher value international opportunities,” Quinn said.

The bank also announced an interim dividend of $0.10 per share and a share buyback of up to $3 billion, he added.

HSBC on Tuesday said it had begun the process of finding a successor to Quinn and was considering both internal and external candidates.

He will continue as chief executive to “ensure a smooth and orderly transition,” the bank added, with his notice period expiring on April 30, 2025.

Quinn said he intended to “pursue a portfolio career going forward” following an “intense five years.”

HSBC shares in Hong Kong rose by more than one percent in afternoon trading to hit a nine-month high.

The bank on Tuesday said that first-quarter revenue rose by three percent to $20.8 billion, reflecting higher customer activity in wealth products.

Under Quinn, the lender has accelerated a yearslong pivot to Asia where it generates most of its revenue vowing to develop its wealth business and target fast-growing markets.

The London-headquartered bank announced earlier this month that it would sell its Argentina division to financial services company Grupo Financiero Galicia for $550 million.

HSBC last month concluded the sale of its Canadian operations for $10.1 billion.

Quinn joined HSBC in 1987 and was appointed interim CEO in 2019 after several years leading its commercial banking unit.

He became HSBC’s permanent CEO in March 2020, when the bank’s shares in Hong Kong tanked sharply at the beginning of the Covid-19 pandemic.

The firm’s share price has risen more than 40 percent since then but has yet to reach its pre-pandemic peaks.

Quinn last year led the effort to repel a bid by major shareholder Ping An to spin off its Asia assets, with the proposal eventually voted down by shareholders.

The break-up bid highlighted HSBC’s precarious position amid US-China tensions, with some observers questioning whether Europe’s largest lender can continue to straddle East and West.

Quinn said in 2022 that chief financial officer Georges Elhedery was part of HSBC’s long-term succession planning, according to Bloomberg News.