HSBC Holdings Plc chief executive Noel Quinn is stepping down in a surprise move after nearly five years in the job, sparking a search for a replacement at Europe’s largest bank.
According to a statement Tuesday, the board has begun a formal process to find a successor, considering both internal and external candidates. Quinn will remain in office throughout this process to ensure a smooth and orderly transition, it said.
During his tenure, Quinn led a series of strategic reviews that culminated in a plan to increase the bank’s investment in its Asian business while reducing investment in developed Western markets such as the United States and France.
“After an intense five years, now is the right time for me to better balance my personal and business life,” Quinn said in the statement. “I intend to pursue a portfolio career in the future.”
The exit comes as HSBC, along with other lenders exposed to China, finds itself navigating an increasingly difficult geopolitical environment – potentially undermining companies that have built businesses there for decades.
The London-based bank also reported a 1.8% decline in pretax profit to $12.65 billion on Tuesday, beating the company’s consensus estimate of $12.6 billion. The lender announced a new $3 billion buyback.
Quinn was named permanent CEO in March 2020 after leading the bank for several months following the ouster of his predecessor, John Flint, who resigned in August 2019.
In 2022, Quinn told Bloomberg that promoting former markets chief Georges Elhedery to chief financial officer was part of the bank’s long-term succession planning. “My aim is to ensure that there are no fewer than three, ideally four to five, potential succession options that the board could consider within HSBC,” he said.
Quinn began his Banking career In 1987 he moved to British lender Midland Bank, which HSBC bought in 1992. The majority of his career at HSBC was spent in the commercial banking division, which he led for several years before being selected by chairman Mark Tucker to replace Flint.
This will be the third CEO search under chairman Mark Tucker, who took the helm of HSBC in October 2017.