HSBC on Monday announced the surprise exit of its chief executive officer John Flint, aged 51, saying the bank needed a change at the top to address the «challenging global environment.»
Flint, which took the helm nearly one-and-a-half years ago, announced this along with the bank's results. Noel Quinn, 57, the head of its global commercial banking unit will hold the role of interim CEO, the lender said in a media statement on Monday.
«The board believes a change is needed to meet the challenges that we face and to capture the very significant opportunities before us,», HSBC chairman Mark Tucker said.
Search for New CEO
«I have agreed with the Board that today’s good interim results indicate that this is the right time for change, both for me and the Bank. After almost 30 years with HSBC, I will be sad to leave but I do so looking forward to a new personal challenge, and confident that our people will continue to serve the Bank’s stakeholders in the best possible way,» said Flint.
The Board has initiated a process to find a new Group Chief Executive. The Board will be considering internal and external candidates.
Challenging Environment
Greater China, where HSBC has substantial business, is facing the headwinds of the U.S.-China trade war, amidst slower growth. Meanwhile, financial regulators in Hong Kong have issued virtual banking licenses which could challenge incumbent lenders. In response, HSBC has announced it would slash certain fees at its retail bank in Hong Kong.
The bank's first-half pretax profit rose 15.9 percent. The lender also declared a further buyback of $1 billion, defying some analysts' expectations it might pause its strategy of returning extra capital to investors.
