(Reuters) - HSBC (LON:HSBA) said on Tuesday its Chief Executive Noel Quinn will retire - a surprise departure by its hard-nosed leader of five years who has overseen a sweeping series of asset sales across the globe.
Following are the reactions to the retirement:
SIMON YUEN, FOUNDER, SURICH ASSET MANAGEMENT, HONG KONG
"Noel had done his best in driving the strategy for the HSBC group. I think shrinking businesses in Western markets such as the U.S., Canada and Europe has been a good move for HSBC at the same time as boosting the group's Asian business."
"We do hope that the next CEO would lay out more plans execution-wise to further increase the bank's businesses in Asian countries. We can see a trend that the concentration of wealthy people has been increasing in Asia and also Middle East. We would expect the next CEO of HSBC to formulate plans to capture the opportunities for those markets in the Middle East, such as Dubai."
YEAP JUN RONG, MARKET STRATEGIST, IG, SINGAPORE
"The surprise retirement of the HSBC CEO seems to be more of his personal reasons, as compared to any fundamental shift in the business prompting his departure. The announcement comes at a time where the bank has been performing well – HSBC's latest earnings have beaten market forecasts, outlook remains healthy while delivering additional returns for shareholders in the form of dividends and buybacks."
"With that, investors may look beyond it eventually as he will still be available to helm the company over the next one year (given his 12-month notice period), which gives ample time for the leadership transition to play out smoothly."
MATT BRITZMAN, EQUITY ANALYST, HARGREAVES LANSDOWN, LONDON
"HSBC has thrown a spanner in the works. News that CEO Noel Quinn plans to retire came as a surprise. Change at the top usually causes a wobble, more so when it's unexpected, and this does raise some questions about how the strategy will evolve from here. The HSBC portfolio is going through a reshuffle, and Quinn's far from completing his mission to get costs under control."
"He took the reins just as the pandemic was spreading across the world, a hugely uncertain time to lead a global bank and pivot away from its more traditional markets. He's also had to navigate geopolitical tensions between the U.S. and China, political unrest in Hong Kong, and plenty of shareholder challenges. He may be a hard act to follow, but market reaction suggests the strong position he leaves behind is enough to quell any uncertainty about who’ll lead the business from here."
MANYI LU, EQUITY ANALYST, DBS VICKERS, HONG KONG
"Since Quinn is retiring due to personal reasons, there should be no material impact on HSBC’s business and share price in the near term."
"HSBC has gone through good transformation in the past years, reaching mid-teens of ROTE (return on tangible equity) target ... the share price also performed well. Whether the successor can maintain this success, especially in the challenging environment of geopolitical tensions, remains the key to watch."
DAVID BLENNERHASSETT, ANALYST, BALLINGAL INVESTMENT ADVISORS, HONG KONG
"Coming up to five years at the helm, the bulk of that through Covid. Plus juggling sensitive domestic/international legal and political matters. 1Q24 numbers beat expectations. Seeking a "better balance between my personal and business life" makes sense."
"Surprised if this has any negative knock-on effect from this. Nearly five years is a decent stretch. When (John) Flint stepped down, they also had to search for a new CEO; there wasn't one immediately waiting in the wings."
WILL HOWLETT, FINANCIAL ANALYST, QUILTER CHEVIOT, LONDON
"This comes as a surprise, especially given Quinn's relatively short tenure during which he has led the bank through significant changes."
"The departure of Quinn introduces an element of uncertainty about the bank’s future leadership at a time when HSBC is navigating a complex global financial landscape."