hsbc noel Quinn2024HSBC CEO Noel Quinn to retire unexpectedly: Who is he and what the bank said

hsbc noel QuinnThis was unexpected news because it came at a time when the lender reported that pre-tax profits had fallen by $200 million in Q1 2022 compared with Q1 2021, standing at $12.7bn.

As part of its announcement that pre-tax profits had fallen by $200 million to $12.7 billion during the first quarter, HSBC said on Tuesday that its chief executive of five years’ service was stepping down.

The surprise news came as the lender reported that pre-tax profits in the first quarter fell by $200 million to $12.7 billion, while announcing a share buy-back.

“Under his leadership, HSBC has delivered record earnings and the highest returns in over a decade,” it noted in a Hong Kong stock exchange filing.

hsbc noel Quinn

“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.”

Of this profit figure, $4.8 billion arose from HSBC’s completion of selling its Canadian business; however, this gain was partially offset by an impairment charge of $1.1 billion scheduled for when it disposes of its Argentine division, according to the bank.

“We have divested our Canadian business and reached agreement to sell our Argentina business which allow us now to concentrate on higher value international opportunities across our global network,” explained Quinn.

He continued: “Our interim dividend per share is US$0.10 and we are launching a share buy-back programme of up to US$3 billion today.”

The process of finding Quinn’s successor has begun, with HSBC stating on Tuesday that internal as well external candidates will be considered for appointment.

hsbc noel QuinnHSBC CEO Noel Quinn

Quinn will remain as CEO until his replacement takes over so as “to ensure a smooth and orderly transition,” but no details were given about precisely when he would leave the bank.

He said that he planned to have a “portfolio career going forward” and that his five years in charge had been “intense.”

During Quinn’s tenure, HSBC has shifted its centre of gravity towards Asia, where it makes most of its money and has pledged to build up its wealth business and target fast-growing markets.

Earlier this month, the London-based lender revealed that it had agreed to sell its Argentine division to Grupo Financiero Galicia for $550 million.

Last month, HSBC also completed the sale of its Canadian business for $10.1 billion.

In January, it offloaded its retail banking arm in France as part of a deal with My Money Group (formerly Cerberus European Servicing).

Five years have most likely been very intense, according to Shanti Kelemen of M&G Wealth, and similarly “he’s had a very long career”. She explained that the bank has changed its form under his leadership by selling off HSBC’s business in Argentina, withdrawing from Canada and expanding its presence in Asia. “I think what he’s done will probably echo through and shape their success for at least the next few years,” she said.

Simon Yuen, the founder of Surich Asset Management which is a shareholder of HSBC bank said that in his opinion it was beneficial for HSBC to shrink its businesses in Western markets like Canada, U.S and Europe and at the same time develop its Asian business. “We hope that the next CEO will elaborate more on the strategies and tactics by which he will grow this company in other parts of Asia,” he added.

Quinn was appointed permanent CEO in March 2020 following a number of years leading the commercial banking unit, according to Bloomberg News.

Last year he spearheaded opposition to a resolution by major investor Ping An Insurance to force HSBC into spinning off its Asian operations; this proposal was ultimately voted down by shareholders.