Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The Guardian - UK
The Guardian - UK
Business
Julia Kollewe

HSBC chief Noel Quinn to step down after ‘intense’ five years

Noel Quinn
Noel Quinn became HSBC chief executive in 2019. Photograph: Roger Harris/HSBC Holdings/AFP/Getty Images

The chief executive of HSBC, Noel Quinn, is unexpectedly stepping down after an “intense” five years in the role, as the bank reported better-than-expected profits.

Europe’s largest bank has kicked off a search for a successor and said Quinn, 62, will stay in the post until a new chief executive is found. It is looking at both internal and external candidates. Quinn is an HSBC veteran who joined the bank in 1987.

The London-based lender reported an 1.8% drop in pre-tax profit to $12.7bn (£10.1bn) in the first three months of 2024, better than analysts had forecast. Revenues increased by 3% to $20.8bn. HSBC said it would buy back up to $3bn of its shares.

Quinn became chief executive, initially on an interim basis, when John Flint was ousted in 2019 after just 18 months. He immediately had to navigate the bank through the pandemic after being made permanent in March 2020, and slashed 35,000 jobs to save £3.5bn a year. Under his leadership, the board fended off demands from top shareholder Ping An to split off HSBC’s Asian business.

Quinn said: “After an intense five years, it is now the right time for me to get a better balance between my personal and business life.”

He added that he would “take a breather” and spend some time with his extended family, and would consider other opportunities once “I’ve had a rest”.

Quinn’s pay roughly doubled to £10.6m last year, when HSBC reported record profits. He has spent 37 years at HSBC, starting his career at Midland Bank and various subsidiaries, and ran its global commercial banking business from 2015. “I would never have dreamed of being the CEO of this bank 37 years ago, and it’s a privilege,” he said.

He added: “I think it’s right for me but I also think it’s right for the bank. The next phase of the journey, continuing to grow and develop the business is a multi-year phase, and it’s right to hand that challenge, that opportunity on to the next leader.”

The HSBC chair, Mark Tucker, said it was Quinn’s decision to retire. He added: “He has driven both our transformation strategy and created a simpler, more focused business that delivers higher returns”.

Quinn has revamped HSBC in recent years, selling off its retail banking businesses in France, the US, Canada and most recently Argentina to sharpen its focus on Asia, where the bank makes most of its profits.

Quinn, who supports Aston Villa football club, joked that the only point of difference between him and Tucker over the past five years had been over football, as Tucker is “an ardent Chelsea supporter”.

Russ Mould, the investment director at AJ Bell, said: “It’s a surprise to see Noel Quinn announce plans to step down as chief executive of HSBC. It felt like he was on a roll with efforts to simplify the group and improve returns.

“He is getting out while the going is good, destined to be seen as the man who fixed HSBC and positioning himself as a go-to person for strategic advice.”

HSBC’s net interest income, the difference in loan charges compared with what is paid out to savers, fell by $300m to $8.7bn as some customers moved their accounts. Non-interest income increased by $900m, reflecting a rise in trading income of $1.3bn, mainly in global banking and markets.

The bank wants to take advantage of the UK’s decision to scrap the banker bonus cap, which was introduced after the 2008 financial crisis and limited bonuses at twice an individual’s base salary. HSBC needs to change its own corporate rules to be able to pay out larger bonuses and is asking shareholders to approve the changes at its annual meeting on Friday.

Quinn said: “We haven’t yet determined the full detail of this implementation. But we wanted to at least get the flexibility to reflect more in variable pay the performance of the bank, and that hasn’t been possible with the two-for-one cap.”

Shareholder approval would allow HSBC to pay out much larger bonuses to its executives and hundreds of its most highly paid bankers, who are referred to as “material risk takers”.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.