HSBC boss steps down after ‘intense’ five years at helm
HSBC is searching for a new chief executive after the sudden retirement of Noel Quinn.
Quinn, 63, has been in the post for five years, initially on an interim basis after his predecessor Doug Flint was ousted.
He joined the group in 1987 and, under his leadership, HSBC delivered record profits. He also masterminded its withdrawal from European and US markets to focus on Asia.
The bank said that Quinn will remain in position while it searches internally and externally for his successor.
He will be eligible for a bonus for 2024 and his deferred incentive share awards will remain in place until they mature, it was said.
Last year, Quinn took home £3.4million in fixed pay and benefits, a £2million bonus and £5million in deferred performance-related shares.
Chairman Mark Tucker said Quinn had transformed the bank during his “distinguished” career.
He said: “He has driven our transformation strategy and created a simpler, more focused business that delivers higher returns. The bank is in a strong position as it enters the next phase of development and growth.” Quinn said he will next seek a series of non-executive directorships. He added: “After an intense five years, it is now the right time for me to get a better balance between my personal and business life.”
The announcement of his decision to retire was made alongside HSBC’s first quarter results, which showed that its pre-tax profits had fallen 1.8% to £10billion, with losses incurred from the sale of its Argentinian business offsetting gains from the disposal of its Canadian unit.
HSBC was hit by the movement of deposits in Europe and Asia, as well as higher costs – primarily spending on technology and staff. There was also an increase in its expected credit losses. They jumped by 66% to £574million.
Elsewhere, Santander UK said its first quarter profits have dropped 29% to £391million due to higher operating expenses and higher interest rates making deposits more expensive.
It offered financial assistance to 1.5 million of its customers in the first quarter due to the cost-of-living crisis.