HSBC Group CEO Noel Quinn unexpectedly announced his retirement Wednesday, alongside the bank’s first-quarter earnings report.
Read what Quinn had to say in a statement shared by HSBC:
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. I am proud of what we have achieved, and it has only been possible because of the talent, dedication, and commitment of the people at HSBC. I want to thank them wholeheartedly and wish them continued success for the next stage of the journey. 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 also addressed his departure in a call with analysts:
I’m very grateful for your support, guidance, friendship, and partnership. I’m proud of what my HSBC colleagues and I have achieved together over the past five years. Over that period, we have hit some significant milestones, record profits last year, the strongest returns in a decade, and the highest dividend since 2008.
As [HSBC Group Chairman Mark Tucker] mentioned, we have created a more focused business, and I believe we have built a strong platform for the bank’s next phase of development and growth. That’s why I feel this is the right time to step back to find a better balance between my personal and business commitments with the intention going forward after a break of pursuing a portfolio career.
When I reflect back on the last 37 years, I have held intensive leadership roles, particularly since I took over the UK Commercial Bank in October of 2008. After 16 years of intensive leadership, I’m ready for a change. But it’s also a natural inflection point for the bank as it comes to the end of the current transformation phase. It’s an ideal time to bring in new leadership.
The board has now started a process to find my successor, and I’m very happy to continue in my role as that process takes place. Rest assured, I will be working hard to ensure a smooth and orderly transition for my successor and to keep the momentum going in this business as you have seen in Q1. Until then, it’s business as usual.
Meanwhile, HSBC posted stronger-than-expected first-quarter earnings. The bank saw $12.7 billion in profits in the first three months of 2024, down $200 million from a year earlier. Despite the year-over-year drop in profits, net income beat analyst estimates compiled by FactSet of $8.6 billion.
Revenue grew by 3% to $20.8 billion for the quarter, blowing past estimates of $16.5 billion, according to FactSet data.
The bank also completed the sale of its Canada business and agreed to a sale of its Argentina business, both of which HSBC said will allow it to focus on markets with “higher value international opportunities.”
HSBC stock was up more than 4% in pre-market trading Wednesday.