2024-04-30 10:06:24
By Le Figaro with AFP
Published 5 hours ago, Updated 17 minutes ago
Noel Quinn, chief executive of British banking giant HSBC. Yves Herman / REUTERS
This decision, after 37 years of career at the British banking giant, is not linked to “a particular event or incident”, he clarified.
The last 5 years have not been easy for Noel Quinn, head of the British banking giant HSBC. The bank announced Tuesday the surprise departure of its general director, who said he wanted to take a breather after “five intense years» at his head, and without the person who will take over from him being known yet. “We all know how difficult the world has been over the past five years», explained during a press conference the manager, who notably led the bank during the Covid-19 pandemic and decided to suspend the dividend which had so upset certain shareholders in Hong Kong. “I have held intense leadership roles since taking over as head of the UK commercial bank in October 2008, so I am personally ready for a change», added Noel Quinn, who notably wants to devote more time to his family.
The 62-year-old manager explained that he wanted a less demanding professional activity after a period of rest, without giving further details. He will remain at the helm of the leading British bank until the arrival of his successor. “We have already launched a process to find our next CEO, (who) will consider both internal and external candidates», announced the chairman of the board of directors, Mark Tucker, at a press conference. The bank hopes to appoint its next bossu during the second half of this year“, he clarified.
The departure of Noel Quinn, after 37 years of career at HSBC, is not linked to “a particular event or incident“, assured the departing leader. The last 12 months have also “been extremely positive in terms of the bank’s financial performance“, he said. The bank stressed on Tuesday that it had recorded since the arrival at its head of Noel Quinn in 2020, “record profits and highest returns in over a decade“. She highlighted the “leading position in sustainable development» acquired by the group.
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Refocused on Asia
In recent years, HSBC has mainly simplified its structure and refocused on Asia, where the banking group generates two thirds of its turnover. This development was pushed in particular by its main shareholder, the Chinese insurer Ping An, which campaigned (without success) for a radical solution: the splitting of activities in Asia in order to obtain better returns. This proposal highlighted HSBC’s precarious position in the face of tensions between the United States and China, with some observers wondering if the bank could continue to straddle East and West.
HSBC also announced on Tuesday a drop of 1.4% in its net profit in the first quarter, to 10.2 billion dollars (9.51 billion euros), despite a gain of 4.8 billion dollars (4 .48 billion euros) after finalizing the sale of its activities in Canada. The result was penalized by a depreciation of $1.1 billion resulting from the planned sale of its activities in Argentina, as well as by a negative comparison effect linked in particular to the sale (which took place on January 1) of its banking network. retail in France to the company My Money Group (MMG). But after a disappointing result in the fourth quarter of 2023 linked to the large depreciation of a stake in a Chinese bank, the figures for the first quarter of 2024 are in fact better than expected.
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“Ease uncertainties”
News of Noel Quinn’s departurewas a surprise» and occurs while the bank “is in the midst of an overhaul and (that its boss) is far from having completed its cost control mission», Estimated Matt Britzman, analyst at Hargreaves Lansdown. In addition to Covid or the dissatisfaction of certain shareholders, the boss also had to manage “geopolitical tensions between the United States and China» or «political unrest in Hong Kong“, he recalled.
More “market reaction suggests the strong position he leaves behind is enough to ease any uncertainty» on inheritance, and “the absence of significant depreciation linked to Chinese commercial real estate» in the first quarter is also welcome, according to this analyst. On the London Stock Exchange, HSBC shares gained 3.32% to 690.30 pence around 08:30 GMT. The stock was also boosted by the announcement of the payment of dividends and a share buyback of up to $3 billion.
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