HSBC Holdings Plc (HSBA.L) has announced the appointment of its Chief Financial Officer Georges Elhedery as its next CEO, emphasizing a strategy of continuity and stability. The 50-year-old veteran, set to take over from outgoing head Noel Quinn on September 2, will be HSBC’s third chief executive in less than eight years.
Elhedery’s career with HSBC spans nearly two decades, starting as a rates trader before joining the bank in 2005. He has held various significant roles, including the co-head of the Global Banking and Markets division, which contributed 24% of HSBC’s revenues last year. Additionally, he served as the CEO of HSBC’s Middle Eastern, North Africa, and Turkiye region between July 2016 and February 2019.
Elhedery, born in Lebanon, was unexpectedly named CFO in October 2022, shortly after a sabbatical. His leadership is anticipated to drive strong performance and sustainable growth for HSBC, as highlighted in the bank’s statement. He commented, “Working together with our talented team, I look forward to delivering exceptional value to our clients and investors by driving strong performance on a sustainable growth trajectory.”
Noel Quinn, who led HSBC for five years and navigated the bank through asset sales, a global pandemic, and investor challenges, will remain CEO until Elhedery takes over. Quinn’s tenure saw the bank shrink its global footprint by a quarter, focusing on its profitable Asian operations.
While Elhedery lacks extensive direct work experience in Asia, his six-month sabbatical included learning Mandarin, underscoring his commitment to understanding the region. HSBC’s strategy to capitalize on its Asian ties comes amid slowing Chinese economic growth and geopolitical tensions. The bank must navigate these challenges, including managing exposure to China’s bad loans crisis, which led to a $3 billion impairment charge last February.
The decision to appoint Elhedery was not surprising to some industry experts. Stanley Tsai, founder of Antler Capital, noted, “Some investors might’ve wanted someone with more direct Asia experience, especially with the Greater China portfolio, but it’s always been the non-Asia business that has presented the most overwhelming challenges.”
HSBC is expected to name Elhedery’s successor as Group CFO soon. The bank has been working on financial incentives and reallocating key projects to retain those who miss out on the top job, according to sources.
HSBC will report its annual results on July 31. The bank’s shares in Hong Kong remained mostly flat after the announcement, with a 7% rise in shares this year compared to an 18% gain in the STOXX Europe banks index.
Reporting by Lawrence White in London and Roushni Nair in Bengaluru; Additional reporting by Xie Yu in Hong Kong; Editing by Sumeet Chatterjee and Edwina Gibbs
