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HSBC’s chief executive Noel Quinn is to retire unexpectedly after five years, setting off a hunt for a successor at the UK-based bank.
Quinn has overhauled the lender since taking charge in 2019, selling off parts of its global operations to increase its focus on Asia, where it makes the lion’s share of its profits.
“After an intense five years, it is now the right time for me to get a better balance between my personal and business life. I intend to pursue a portfolio career going forward,” said Quinn.
The bank’s board said it had begun a formal process to find a successor and is considering internal and external candidates.
“The Board would like to pay tribute to Noel’s leadership of the company,” said chair Mark Tucker. “Noel has had a long and distinguished 37-year career at the bank and we are very grateful for his significant contribution to the group over many years.”
Quinn, 62, joined the lender in 1987 and served for a few months as interim chief executive before being formally appointed in March 2020. HSBC said he would remain as group chief executive until his successor starts and had agreed to remain available through to the end of his notice period, which expires April next year.
Quinn’s plan to leave was announced as the UK-based lender said pre-tax profits for the first three months of 2024 fell nearly 2 per cent to $12.7bn compared to the same period last year, slightly beating analysts’ expectations of $12.6bn.
The bank’s net interest margin, a crucial measure of lending profitability, rose to 1.63 per cent compared with the previous quarter, the result of higher interest rates and a reflection of the impact of hyperinflation and currency devaluation in Argentina.
The bank this quarter took a $1.1bn hit due to the sale of its Argentina business to banking group Grupo Financiero Galicia but booked a gain of $4.8bn from the sale of its Canadian business this year. The bank has also sold its French retail banking business in recent months and agreed to sell its Russian unit.
HSBC also announced new share buybacks worth up to $3bn, on top of a $2bn buyback announced in February. The bank also announced a 31 cents per share dividend including a first interim dividend of 10 cents.