After reportedly emphatic proclamations by HSBC’s interim chief executive Noel Quinn that he would act «not just as an interim CEO, but as the CEO of the bank,» his position remains unchanged and his future even more uncertain after dismal annual results in 2019.
Since taking over the helm in August last year as the interim chief executive succeeding John Flint’s short-lived stint, Quinn had made it clear that he was here to stay. In addition to spearheading the management shakeup across the group, he had boldly stated that he did not intend to act as a «caretaker» of the bank.
«I’m certainly not intending, and was not asked, to be, a caretaker CEO,» Quinn reportedly said in an internal video which outlined his business plan. «My mandate is to run the business not just as an interim CEO, but as the CEO of the bank.»
Four months onwards, Quinn remains very much the group’s interim chief executive registering disappointing profits that missed analyst expectations by nearly one-third.
3/8 Strategic Priorities Not «On Track»
«The Group’s 2019 performance was resilient, however parts of our business are not delivering acceptable returns,» admitted Quinn in a statement from its latest results.
Of its eight strategic priorities, five were considered «on track» – growth in Asia, HSBC U.K., improving capital efficiency, efficiency gains and customer satisfaction. The remainders include two were «partly on track» – growth in its international network and simplification of the organization coupled with investment in future skills – the «off track» priority of turning around its U.S. business and achieving 6 percent return on tangible equity by 2020.
Judgement Day
Quinn has already announced restructuring plans focused on further increasing the HSBC’s share of resources on Asia and the Middle East. Implementation has already begun and Quinn is committed to «exciting at pace».
But at whatever pace it may be, the deadline for closure is nearing. Whilst the bank had initially only said that the appointment process for a permanent CEO was «ongoing» and in line with its «original timetable», it earmarked a six to 12-month timeline for making an announcement when pressed by analysts seeking for signs of stability.
