London (Parliament News) – HSBC CEO Noel Quinn resigns after an ‘intense’ five-year term, overseeing better-than-expected profits. A successor hunt begins as the bank looks to sustain growth. Quinn reflects on his tenure and plans.
The chief executive of HSBC, Noel Quinn, is suddenly stepping down after an “intense” five years in the position, as the bank noted better-than-expected profits. Europe’s largest bank has kicked off a hunt for a successor and said Quinn, 62, will remain in the post until a new chief executive is discovered.
According to the Guardian, the London-based lender said a 1.8% drop in pre-tax profit to $12.7bn in the first three months of 2024, better than critics had forecast. Revenues raised by 3% to $20.8bn. HSBC stated it would buy back up to $3bn of its shares.
How has HSBC’s financial performance under Noel Quinn’s leadership?
Quinn became chief executive, initially on an acting basis, when John Flint was dismissed in 2019 after just 18 months. He instantly had to navigate the bank through the pandemic after being pushed permanent in March 2020 and cutting 35,000 jobs to save £3.5bn a year. Under his leadership, the board fended off requests from top shareholder Ping An to split off HSBC’s Asian business.
Quinn stated: “After an intense five years, it is now the right time for me to get a better balance between my personal and business life.” He added that he would “take a breather” and spend some time with his extended family, and would consider other opportunities once “I’ve had a rest”.
What were the key milestones of Noel Quinn’s leadership?
Quinn’s income roughly doubled to £10.6m last year, when HSBC declared record profits. He has spent 37 years at HSBC, beginning his career at Midland Bank and various subsidiaries, and ran its global commercial banking company from 2015. “I would never have dreamed of being the CEO of this bank 37 years ago, and it’s a privilege,” he stated.
He added: “I think it’s right for me but I also think it’s right for the bank. The next phase of the journey, continuing to grow and develop the business is a multi-year phase, and it’s right to hand that challenge, that opportunity on to the next leader.”
The HSBC chair, Mark Tucker, stated it was Quinn’s decision to quit. He added: “He has driven both our transformation strategy and created a simpler, more focused business that delivers higher returns”.
What transformations did HSBC undergo under Noel Quinn’s leadership?
Quinn has rebuilt HSBC in recent years, selling off its retail banking companies in France, the US, Canada and most recently Argentina to point its focus on Asia, where the bank makes most of its profits. Quinn, who backs Aston Villa football club, quipped that the only point of difference between him and Tucker over the past five years had been over football, as Tucker is “an ardent Chelsea supporter”.
Russ Mould, the investment director at AJ Bell, said: “It’s a shock to see Noel Quinn announce plans to step down as chief executive of HSBC. It seems like he was on a roll with efforts to simplify the group and improve returns.
“He is getting out while the going is good, destined to be seen as the man who fixed HSBC and positioning himself as a go-to person for strategic advice.”
HSBC’s net interest revenue, the difference in loan charges corresponding with what is paid out to savers, fell by $300m to $8.7bn as some customers moved their accounts. Non-interest income rose by $900m, reflecting a rise in trading earnings of $1.3bn, mainly in global banking and markets. The bank wants to take benefit of the UK’s decision to scrap the banker bonus cap, which was presented after the 2008 financial crisis and restricted bonuses to twice an individual’s base salary.