Hong Kong (AFP) – HSBC on Wednesday said its chief financial officer Georges Elhedery would step up to the role of chief executive as the Asia-focused banking giant looks to drive growth.
Keeping with HSBC tradition of promoting from within for the top job, the new boss will take the helm on September 2 as the lender looks to push on with a transformation undertaken by current CEO Noel Quinn, who in April announced his surprise retirement.
“I am delighted to confirm Georges as the next HSBC Group chief executive,” group chairman Mark Tucker said in a filing to Hong Kong’s stock exchange.
“The Board concluded that Georges was the outstanding candidate and we look forward to working together as he leads HSBC through the next phase of development and growth.”
Elhedery, 50, joined HSBC in 2005, rising to the role of chief financial officer (CFO) around 18 months ago.
The Lebanon-born, French-educated banker has also led the bank’s Middle Eastern, North Africa and Turkey region.
Before assuming the role of CFO, Elhedery had a six-month sabbatical that reportedly included spending time learning Mandarin.
Elhedery has a “track record of leading through change, driving growth, delivering simplification, containing costs and brings a strong focus on execution”, Tucker said.
The new CEO said he was “deeply honoured by the trust placed” in him.
“Working together with our talented team, I look forward to delivering exceptional value to our clients and investors by driving strong performance on a sustainable growth trajectory,” Elhedery said in the statement.
HSBC has yet to appoint a new CFO, while Quinn will work with Elhedery to ensure a “smooth and orderly” handover, the bank added.
Quinn, 62, has overseen a transformation of the London-headquartered lender during almost five years in charge, helping to drive profits thanks to cost-cutting and soaring interest rates and despite some massively turbulent times.
He took over as Covid erupted, an event that saw the bank’s share price tank. Quinn also carried out a massive restructuring programme in the wake of the pandemic, slashing thousands of jobs to refocus on its most profitable areas in Asia and the Middle East.
Profits later fell heavily, however, owing to bad debts linked to Russia’s invasion of Ukraine, before rebounding as global lenders hiked interest rates following similar moves by central banks to combat soaring inflation.
Also under Quinn, the firm has accelerated a years-long pivot to Asia — where it generates most of its revenue — enabling it to develop its wealth business and target fast-growing markets.
He concluded the sale of HSBC’s Canadian operations and its retail bank unit in France.
The lender plans to sell also its Argentina division.
And last year, Quinn led the effort to repel a bid by major shareholder Ping An to spin off its Asia assets, with the proposal eventually voted down by shareholders.
The break-up bid highlighted HSBC’s precarious position amid US-China tensions, with some observers questioning whether Europe’s largest lender can continue to straddle East and West.
– ‘Safe choice’ –
HSBC shares edged up 0.1 percent to 664.8 pence in London morning deals following news of Elhedery’s appointment.
He “is seen as a safe choice and a solid pair of hands who already knows the business inside and out”, noted Dan Coatsworth, investment analyst at AJ Bell.
Elhedery’s “background as a numbers man will come in handy as juggernauts of the banking industry such as HSBC continuously need to keep costs under control.
“If he can make the business run more efficiently, it will create the right kind of platform to look at longer-term strategic growth opportunities,” Coatsworth added.
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© 2024 AFP
