In a surprising turn of events, HSBC Holdings Plc's Chief Executive Officer, Noel Quinn, has announced his decision to resign after leading the bank for nearly five years. The announcement was made as HSBC reported a slight dip in pretax profit for the first quarter of 2024 despite beating consensus estimates.

HSBC CEO Noel Quinn Announces Surprise Retirement

During his tenure, Quinn spearheaded a series of strategic reviews that focused on boosting the bank's investment in its Asian business while scaling back operations in developed Western markets, such as the United States and France. His leadership navigated the bank through the challenges posed by the coronavirus pandemic and heightened geopolitical tensions, particularly in HSBC's key market, China.

Although Quinn spent five years in the CEO's chair, he was associated with the company for much longer, working with it for nearly 40 years in total.

One of Quinn's most notable achievements was successfully fending off a campaign by HSBC's largest Asian investor, China's Ping An Insurance, which sought to spin off the bank's Asia business. The showdown culminated in a defeat for Ping An at HSBC's shareholders meeting last year.

“After an intense five years, it is now the right time for me to get a better balance between my personal and business life,” said Quinn. “I intend to pursue a portfolio career going forward.”

The board has initiated a formal process to find Quinn's successor, considering both internal and external candidates. The Chief Financial Officer, Georges Elhedery, was appointed to the role last January after a sabbatical and is considered a leading internal candidate for the position.

Quinn has agreed to remain as the CEO until his successor takes over and will be available until the end of his 12-month notice period to ensure a smooth transition.

Financial Performance in Q1 2024 and Share Buybacks

Alongside the leadership change, HSBC reported a pretax profit of $12.7 billion for the quarter ended March, slightly ahead of forecasts but down from $12.9 billion a year earlier. The bank also announced $3 billion worth of share buybacks on top of the $2 billion share purchases announced in February.

HSBC continues to target a return on average tangible equity in the "mid-teens" for 2024, with banking net interest income of at least $41 billion, dependent on global interest rate trajectories.

“Our good profit performance of $12.7bn in the first quarter has enabled us to continue the trend of rewarding our shareholders,” Quinn commented in the financial report. “We have announced a total of $8.8bn of distributions, consisting of a first interim dividend for 2024 of $0.10 per share, a special dividend of $0.21 per share from the Canada sale proceeds, and a new share buy-back of up to $3bn.”

At the beginning of this month, the global financial technology provider Adyen partnered with HSBC's PayMe. This partnership is designed to allow Adyen's merchants to tap into PayMe’s extensive user base and offer various payment options in Hong Kong. PayMe, launched in 2017, has garnered over three million users and is accepted by more than 65,000 physical and online outlets nationwide.

Earlier this year, the banking giant unveiled Zing, a new international payments app poised to compete with leading fintech entities, such as Revolut and Wise. In the backdrop of neobank apps increasingly encroaching on market shares traditionally held by conventional banks, HSBC is stepping up its game to recapture customer interest, particularly among younger demographics.