HSBC names third CEO in less than eight years

HSBC has appointed its Chief Financial Officer Georges Elhedery as its next CEO, the bank said Wednesday.

Lebanon-born Elhedery, 50, who becomes the bank’s third chief executive in less than eight years, will replace outgoing head Noel Quinn from September 2. While the 160-year-old lender did consider external candidates, it has traditionally appointed its CEO from within.

“For most investors, continuity is essential, especially after the battles HSBC’s board has been through in recent years, to persuade shareholders that its strategy is right,” said Matt Britzman, equity analyst at Hargreaves Lansdown.

Elhedery’s appointment comes as HSBC (HSBC) tries to shift from restructuring to growth, at a time when helpful interest rate hikes may have peaked and geopolitical tensions simmer.

Iain Pyle, senior investment director at HSBC shareholder abrdn, said Elhedery had made a good impression on the market over his 18 months as finance chief and was “a clear communicator.”

“It’s a continuity appointment, but a strong candidate and I think will be taken well today,” he said.

HSBC defeated a shareholder resolution last year backed by Chinese insurance giant Ping An and other Hong Kong-based shareholders who were seeking a spin-off of its lucrative Asia business.

Ping An, which owns 8.9% of HSBC according to LSEG data, declined to comment on Elhedery’s appointment.

Elhedery began his career in banking as a trader before joining HSBC in 2005.

One of HSBC's many branches in Hong Kong pictured on February 19, 2024

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In October 2022, he was unexpectedly appointed CFO just weeks after returning from a sabbatical. It was a move that groomed him for the top job.