HSBC Chief Executive Noel Quinn will retire, the bank said on Tuesday, in a surprise departure from the business that he has overhauled in the past five years through a sweeping series of asset sales across the globe.

The bank said it has already launched a formal process to find a successor, with Chief Financial Officer Georges Elhedery likely the leading internal candidate for the job.

At the same time, HSBC reported a 1.8 percent drop in first-quarter profit as it struggles to cope with rising costs from expansion in Asia and amid inflationary pressures.

Pretax profit came in at US$12.7 billion for the quarter ended March versus US$12.9 billion a year earlier.

The results were better than the US$12.6 billion average of analysts' forecasts compiled by HSBC.

The London-headquartered bank also announced US$3 billion worth of share buybacks on top of US$2 billion in share purchases announced in February.

Speaking during a media call, Quinn said he informed the group's chairman Mark Tucker of his decision last month, saying he wanted to have a better work-life balance after an "intense" five-year period in the top job.

"I would never have dreamed of being the CEO in the bank 37 years ago and it's a privilege. But you also have to look forward and say what's right for you personally, and I did a lot reflecting on that over Christmas, the New Year, and January," he said.

"I think it's right for me, but also think it's right for the bank, it's a natural transition point for the bank," adding he would work hard to ensure a smooth transition for his successor.

Tucker thanked Quinn for his leadership and for his years of work at the bank, and said he and the board fully "support and respect that decision". (Reuters)

The HSBC group chairman also said the board and its nomination committee hoped to name a new chief executive in the second half of this year.
_____________________________
Last updated: 2024-04-30 HKT 16:00