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HSBC has named Georges Elhedery as chief executive, handing an insider the challenge of steering the bank through escalating tensions between the west and China.
Elhedery, who has been chief financial officer since the start of 2023, will succeed Noel Quinn on September 2, HSBC said on Wednesday.
Quinn surprised investors in April by announcing he would step down after almost five years in the role, a decision that left Elhedery as the frontrunner to succeed him.
His ascension to the top job caps a remarkable rise for Elhedery, who joined the bank in 2005. The promotion also puts him at the helm of a globally important institution that has been caught up in geopolitical tensions between China and the west.
The 50-year-old also takes on the role just as the boost to HSBC’s bottom line from higher interest rates begins to fade.
Announcing the appointment, HSBC chair Sir Mark Tucker said Elhedery “is an exceptional leader and banker who cares passionately about the bank, our customers and our people.
“He has a record of leading through change, driving growth, delivering simplification, containing costs and brings a strong focus on execution.”
Under Quinn, HSBC started to shed parts of its global operations and strengthen its focus on Asia, where it makes the largest share of its profits. He also embarked on an extensive restructuring of the bank, cutting 35,000 jobs and pledging to slash annual costs by $4.5bn.
“I am deeply honoured by the trust placed in me to lead this great institution into the future,” Elhedery said in a statement.
HSBC said the appointment followed an “orderly and robust” succession process.
The rise in interest rates over the past two years has helped send the bank’s shares close to their highest level in six years.
Its pre-tax profits in the first quarter slipped 2 per cent to $12.7bn from the same period a year earlier.
Tucker thanked Quinn, who initially took over in 2019 on an interim basis after his predecessor John Flint was ousted following just 18 months in the job, “for his loyal commitment to the group over 37 years”.
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