HSBC CEO John Flint Is Out After 18 Months in Role -- 2nd Update
August 04 2019 - 8:39PM
Dow Jones News
By Margot Patrick
HSBC Holdings PLC said late Sunday its chief executive John
Flint is out and new leadership is needed to meet the bank's
challenges.
The bank's global commercial banking head, Noel Quinn, will take
temporary charge of the CEO role while a search is carried out,
HSBC said.
The surprise announcement came 18 months after Mr. Flint was
elevated to the CEO role, as the top choice of the board under its
then newly appointed chairman, Mark Tucker. Mr. Flint was regarded
as a safe choice because of his decadeslong career at the bank, and
he made few changes to the bank's strategy during his tenure.
But his low-key style frustrated some, according to some people
within the bank, and the board decided he had to go for HSBC to
keep up and get ahead of business conditions and world events.
"We've made a decision by mutual agreement. In an increasingly
complex and challenging global environment, the board feels a
change is needed to make the most of the opportunities before us,"
Mr. Tucker said in an interview.
In a statement, Mr. Flint, 51, said it had been a privilege to
spend his entire career at HSBC, which he joined from college as a
trainee on its international manager program. "I have agreed with
the board that today's good interim results indicate that this is
the right time for change, both for me and the bank," he said.
HSBC said Mr. Flint will leave his role immediately but will be
available to assist HSBC with the leadership transition.
When he started as CEO in early 2018, Mr. Flint had been
expected to ride a wave of improving profits as global interest
rates started to rise and the world economy looked rosy. But those
expectations were dashed as central banks began lowering rates
again and geopolitical tensions roiled markets.
Parts of HSBC's business have been under pressure from trade
tensions between the U.S. and China, which has curbed trade and
investment for some customers, albeit to a limited degree according
to the bank. HSBC also is facing a potential deterioration in
earnings in its British arm from the U.K.'s pending exit from the
European Union, and has lagged behind on plans to turn around its
U.S. business.
The bank released second-quarter earnings along with the
announcement on Mr. Flint stepping down, posting $4.37 billion net
profit, up from $4.1 billion in the prior-year quarter, on higher
revenue.
Write to Margot Patrick at margot.patrick@wsj.com
(END) Dow Jones Newswires
August 04, 2019 20:24 ET (00:24 GMT)
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