HSBC To Announce New CEO By July To Stabilize Asia-Focused Strategy

Zinger Key Points
  • HSBC plans to announce a new CEO before July, with internal candidates like CFO Georges Elhedery and wealth head Nuno Matos in the lead.
  • Chairman Mark Tucker aims to avoid delays seen in previous CEO replacements, emphasizing a need to finalize the search soon.

HSBC Holdings Plc HSBC aims to finalize its search for a new CEO in the coming weeks, likely choosing from internal candidates.

The bank plans to announce the successor to outgoing CEO Noel Quinn before the half-year results in late July. Candidates include CFO Georges Elhedery, global wealth head Nuno Matos, and external options, Bloomberg reports.

Also Read: Morgan Stanley To Slash Jobs In Asia-Pacific Region: Report

Chairman Mark Tucker emphasized the need to conclude the search by the second half of the year. Previously, the replacement of CEO John Flint took over six months, a delay HSBC wants to avoid.

Although Tucker initially preferred an outsider, internal candidates are now strong contenders.

Quinn plans to pursue a portfolio career afterward. An internal appointment may stabilize HSBC's strategy, which has focused on shifting operations toward Asia and selling significant Western assets. The bank faces pressure from shareholder Ping An Insurance Group to make more substantial changes, though the insurer is considering reducing its stake.

Reports indicated HSBC initiated job cuts in Asia as its dealmaking pipeline dried up.

In April, HSBC reported 3% growth in its first-quarter revenue to $20.8 billion and a pretax profit of $12.7 billion for the quarter.

HSBC announced $8.8 billion in distributions, including dividends and buybacks.

HSBC Holdings stock gained 18% in the last 12 months. Investors can gain exposure to the stock via the Dimensional International Value ETF DFIV and Trust For Professional Managers ActivePassive International Equity ETF APIE.

Price Action: HSBC shares are up 0.04% at $44.33 at last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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