Georges Elhedery, HSBC's new CEO, during an interview with Reuters in Dubai, August 7, 2017. (Credit: Hadeel Al Sayegh/Reuters)
The British bank HSBC has appointed its Lebanese-born Chief Financial Officer, Georges Elhedery, as the next CEO, the bank announced on Wednesday. This choice "underscores the global banking group's preference for continuity as it seeks to reignite growth," the company stated.
Elhedery, 50, who becomes HSBC’s third CEO in less than eight years, will replace Noel Quinn starting September 2. Although the 160-year-old lender considered external candidates, it has traditionally appointed its CEO internally.
"For most investors, continuity is essential, especially after the battles the HSBC board has had to fight in recent years to convince shareholders that its strategy is the right one," said Matt Britzman, equity analyst at Hargreaves Lansdown. "This appointment helps allay ongoing concerns. Of course, it will be a blow to those in the other camp who wish HSBC to withdraw from its non-Asian markets," he added.
Born in Lebanon, Elhedery began his banking career as a trader before joining HSBC in 2005. He led the bank’s Middle East, North Africa, and Turkey region between July 2016 and February 2019. Subsequently, he co-headed the Global Banking and Markets division, which encompasses HSBC's trading and investment banking advisory activities, accounting for 24% of the group’s revenue in 2023.
In October 2022, he was appointed Chief Financial Officer, just weeks after returning from a sabbatical – a decision that prepared him for his new role, which involves a higher level of responsibility. "In collaboration with our talented team, I look forward to delivering exceptional value to our customers and investors by driving strong performance on a sustainable growth trajectory," he said in the bank’s announcement of his appointment.
Quinn, who has led HSBC for five years, will remain CEO until Elhedery takes over. When his surprise departure was announced in April, he stated that he wanted a better work-life balance and was considering pursuing a career in portfolio management.
Quinn oversaw a series of asset sales, managed a global pandemic, and dealt with pressure from activist investors to break up the bank, allowing HSBC to post a record profit in 2023. Bank shareholders linked to Chinese investor Ping An attempted to split the bank in 2023, but HSBC successfully fended off this attempt.
This appointment comes at a time when the bank, which is also Europe’s largest lender with $3 trillion in assets and relatively strong financial health, is leveraging its historical ties with Asia to boost its profits.
In 2023, HSBC appointed another Lebanese, Patrick George, to head its equities and bond markets department. He succeeded Georges Elhedery, who had been promoted to Chief Financial Officer of the group at the time.
