HSBC ousts CFO and appoints new one

HSBC named Georges Elhedery as its new chief financial officer on Tuesday – a move that puts him in line to succeed CEO Noel Quinn.

At the same time, Quinn played down the idea that he would be leaving soon.

“I’m here for many years to come,” he told the FinancialTimes.

“My ambition is to ensure that there are no less than three and ideally four to five potential succession options that the board could consider within HSBC,” Quinn said, according to Bloomberg.

The reshuffle puts Ewen Stevenson out of the bank. Stevenson will step down at the end of December, days before his fourth birthday with Britain’s biggest lender. Under Tuesday’s deal, Elhedery will become chief financial officer in January and Stevenson will leave the bank in April.

“I would like to pay tribute to Ewen’s accomplishments and professionalism during his time with us and to thank him for his thoughtful and meaningful contribution to HSBC during a time of significant change,” Quinn said in a statement.

Stevenson, for his part, said it has been “an absolute privilege to be part of the management team leading a fundamental turnaround in HSBC’s operating performance over the past few years”.

“I have great confidence in the future of HSBC and wish Noel, Georges and the rest of the management team the best of luck as they continue to execute the bank’s strategy,” he said. -he declares.

Elhedery, HSBC’s former co-CEO of global banking and markets, returned from a six-month sabbatical in September but moved directly under Quinn rather than his old job.

“Georges is an exceptional leader with a solid track record,” Quinn said. “He also has the technical and strategic capabilities to take on the role of Group Chief Financial Officer and continue to implement the board’s strategy.”

Elhedery brought his commercial expertise to HSBC in 2005, when he joined as a senior global markets executive. After serving as CEO of the bank’s operations in the Middle East, North Africa and Turkey, he took on the role of Co-CEO of Global Banking and Markets in March 2020.

The bank, meanwhile, on Tuesday named Greg Guyett as its sole managing director of global banking and markets.

The executive reshuffle comes more than two years after HSBC announced plans to cut 35,000 jobs and $100 billion in assets by 2023. More recently, the bank resisted calls from investor Ping An to spin off – a move intended to force HSBC to focus on its footprint in Asia, where it draws most of his income.

As it stands, HSBC said on Tuesday it had taken a $2.4 billion charge related to the project. sale of French sound retail banking operations.

The bank also made $1.1 billion in provisions for expected credit losses, according to third-quarter results, released by HSBC on Tuesday. The bank saw a 46% drop in third-quarter profits, according to The Wall Street Journal.

Europe is not the only area where HSBC is considering a smaller presence. The bank is said to be exploring a sale of his Canadian footprint, a prospect that could earn the bank between $7 billion and $10 billion.

Quinn on Tuesday quashed rumors that HSBC’s Mexican footprint could also be under threat.

“Mexico won’t be for sale soon,” he said, according to the Financial Times. “We see that business activity is growing. It is a company that produces good returns and which we believe can produce even higher returns and earnings growth.

Under Tuesday’s deal, Elhedery will receive a base salary of £780,000 a year, a fixed allowance of £1,085,000 and a retirement allowance of £78,000.

Stevenson will receive a payment of up to £417,885 from the bank in lieu of his base salary and retirement allowance until October 25 next year, HSBC said in a file.