Noel Quinn, the Group Chief Executive Officer of HSBC, has announced his surprise retirement after nearly five years at the helm of the London-based bank. The announcement, made on Tuesday, coincided with the release of HSBC's first-quarter earnings report, which showed a slight decline in profits compared to the previous year.
In a statement released by the bank, Quinn expressed his gratitude for the opportunity to lead HSBC, saying, "It has been a privilege to lead HSBC. I never imagined when I started 37 years ago that I would have the honour of becoming Group Chief Executive of this great bank." He attributed the bank's achievements during his tenure to the "talent, dedication, and commitment of the people at HSBC," and thanked them "wholeheartedly" for their efforts.
Quinn, who first took on the role of interim CEO in August 2019 before being appointed permanently in March 2020, cited the need for a better work-life balance as the primary reason for his departure. "After an intense five years, it is now the right time for me to get a better balance between my personal and business life. I intend to pursue a portfolio career going forward," he stated.
During his time as CEO, Quinn navigated HSBC through numerous challenges, including the Covid-19 pandemic and the deteriorating relations between China and the West. Despite these obstacles, the bank's London-listed shares have risen over 30% since he assumed the leadership position.
HSBC's Chairman, Mark Tucker, praised Quinn's leadership, stating, "He has driven both 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."
The bank has now begun the process of searching for Quinn's successor, with the board of directors considering both internal and external candidates. Until a replacement is found, Quinn will continue to serve as CEO to ensure a "smooth and orderly transition."
HSBC's first-quarter earnings report, released alongside the announcement of Quinn's retirement, showed a profit of $12.7 billion for the first three months of 2024, a slight decrease of $200 million compared to the same period in the previous year. The bank also completed the sale of its Canada business and agreed to sell its Argentina business, moves that HSBC said will allow it to focus on markets with "higher value international opportunities."
Following the news of Quinn's departure and the release of the earnings report, HSBC's stock experienced a boost, rising more than 4% in pre-market trading on Wednesday. Shares of the bank were also up 3.6% at 11:04 a.m. London time on Tuesday.
As HSBC enters a new phase of development and growth, the search for a new CEO to fill Quinn's shoes will be closely watched by investors and industry observers alike. The bank's ability to navigate the challenges posed by the global economic landscape and maintain its strong position will depend heavily on the leadership and vision of its next chief executive.
