HSBC makes changes at the top ahead of overhaul

Pedro Gonçalves
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HSBC makes changes at the top ahead of overhaul

HSBC has announced a major overhaul of its top team as interim chief executive Noel Quinn continues to put his stamp on the bank ahead of a big restructuring.

Marc Moses, the group chief risk officer and one of only four executives to sit on the bank's board of directors, will step down from his roles at the end of the year and be replaced by Pam Kaur, head of wholesale market and credit risk. He will officially retire from the bank on December 9, 2020.

The bank's group chief operating officer, Andy Maguire, will retire at the end of January and Sami Assaf, the long-time head of HSBC's investment bank, will take a new position as chairman of the bank's corporate and institutional banking business.

I'd like to thank each of these individuals for their extraordinary dedication and commitment to the bank over many years"

John Hinshaw, a former Hewlett Packard Enterprise executive, will join as group chief operating officer designate on Tuesday. Georges Elhedery, head of global markets, and Greg Guyett, head of global banking, will replace Assaf as co-heads of the global banking and markets business.

"I'd like to thank each of these individuals for their extraordinary dedication and commitment to the bank over many years," Quinn said in a stock exchange filing on Monday. "In their respective successors we have talented and capable individuals that I'm looking forward to working closely with as we execute plans for the next phase of the bank."

The changes have emerged months after Quinn blasted the lender's performance as "not acceptable" following an 18% fall in third-quarter profits compared to 2018. Only $100m of the lender's $4.8bn profit was generated outside Asia, piling pressure on divisions to up their game in Europe and the US.

Quinn was named interim CEO in August and has been moving to restructure its operations as part of his efforts to "remodel" Europe's largest bank by assets. He replaced John Flint, who was ousted after 18 months in the top job.

Quinn, 57, is seen as a strong candidate to win the top job permanently but faces competition from several external candidates, including Stephen Bird, a senior Citigroup executive, and Stephen Hester, the former boss of Royal Bank of Scotland who now runs the insurer RSA.

HSBC's cost-cutting drive threatens up to 10,000 jobs. People working on the plan told the FT that the reduction to the bank's 237,000 headcount could be even larger when accounting for the balance sheet reduction and the sale of assets including its French retail bank.   

 

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