HSBC Holdings PLC yesterday said that 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 banking giant reported that pretax profits in the first quarter fell by US$200 million to US$12.7 billion, while revenue rose 3 percent to US$20.8 billion, reflecting higher customer activity in wealth products.
“During his tenure, HSBC has delivered record profits and the strongest returns in over a decade,” the lender said in a Hong Kong stock exchange filing.
Photo: Bloomberg
“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 US$4.8 billion gain after HSBC completed the sale of its Canada business, partly offset by a US$1.1 billion impairment from the planned sale of its Argentina operations, the bank said.
HSBC also announced an interim dividend of US$0.10 per share and a share buyback of up to US$3 billion.
The bank said it had begun the process of finding a successor to Quinn and was considering internal and external candidates.
He would continue as CEO to “ensure a smooth and orderly transition,” the bank added, with his notice period expiring on April 30 next year.
Quinn said he intends to “pursue a portfolio career going forward” following an “intense five years.”
Under Quinn, the lender has accelerated a years-long pivot to Asia — where it generates most of its revenue — vowing to develop its wealth business and target fast-growing markets.
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.
HSBC yesterday rose 2.9 percent in Hong Kong, hitting a nine-month high.
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