HSBC boss Flint in shock exit as bank warns of ‘challenging’ geopolitics
HSBC on Monday announced the shock exit of CEO John Flint, as the bank giant revealed decent first half profits but warned of “challenging” geopolitics.
The London-headquartered lender gave no reason for Flint’s sudden departure after less than two years in the job, but said it needed a change at the top and warned investors of difficult times ahead.
“HSBC Holdings Plc announces that John Flint has today stepped down as Group chief executive and as a director by mutual agreement with the board,” read a statement.
“Although not carr y ing out his day-to-day duties after today, he remains available to assist HSBC with the t ransit ion.”
The exact amount Flint will get as a payoff remains unknown until he leaves, HSBC added.
The surprise news came shortly before HSBC reported first-half net profit up 18.6 per cent at $8.5 billion from a year earlier – but cautioned over dark clouds on the horizon.
“In the increasingly complex and challenging global environment in which the bank operates, the board believes a change is needed to meet the challenges that we face and to capture the very significant opportunities before us,” said chairman Mark Tucker in comments that hinted at a forced departure.
Flint, 51, who has spent three decades at HSBC, was keen to lower costs with the Asia-focused bank facing the double uncertainties caused by both the Sino-US trade war and Britain’s impending departure from the EU.
“I have agreed with the board that today’s good interim results indicate t hat t his is t he right time for change, both for me and the bank,” said Flint.
HSBC said it would look both interna lly and externally for a new leader and that Noel Quinn, head of the commercial banking div ision, will be interim CEO in the meantime.
The move comes just weeks after its US chief Patrick Burke retired following a reorganisation of its North American business.
Flint’s departure came despite good results announced on Tuesday with pre-tax profit of $6.2 billion for the second quarter.
The bank also said it would soon begin a buyback of its shares worth up to $1 billion, according to a statement.