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HSBC CEO Noel Quinn has announced his unexpected retirement after five years in the role. Quinn will continue as CEO through a 12-month notice period while HSBC begins the search for his successor.
“After an intense five years, it is now the right time for me to achieve a better balance between my personal and business life. I intend to pursue a portfolio career going forward,” Quinn said.
During his tenure, Quinn led a period of significant transformation at the bank, cutting 35,000 jobs and pledging to cut annual costs by $4.5bn. He was instrumental in realigning HSBC’s focus on Asia, its most profitable region, by selling off parts of its global operations.
In a statement, HSBC’s chair Mark Tucker said that Quinn has “driven both our transformation strategy and created a simpler, more focused business that delivers higher returns”.
Alongside the news of Quinn’s retirement, HSBC reported its first quarter earnings. Its revenue reached $20.8bn, up 3 per cent from the same period last year, exceeding median forecasts from LSEG for around $16.94bn.
Pre-tax profits for the period totalled $12.65bn, a 2 per cent decline from a year ago, yet still beating analysts’ forecasts of $12.61bn compiled by the bank. However, post-tax income decreased to $10.84bn, lower than the $11.03bn recorded in the first quarter of 2023.
In comments emailed to journalists, Rob Murphy, managing director at Edison Group, wrote: “As the bank’s chief Noel Quinn announces his surprise resignation, HSBC has released a good set of Q1 results.”
“HSBC has undergone an ambitious programme to streamline its business model over the last five years, shedding its retail banking arms in the US, France, Canada, and Argentina. The result has been a sustained rise in HSBC’s share price and a return to profitability.”
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Santander has announced an 11 per cent increase in quarterly profits on Tuesday, defying the downward trend seen among its European counterparts. The increase in profits was primarily attributed to a 16 per cent rise in net interest income, supported by its global customer base of around 166mn customers.
With a profit of €2.9bn in the first quarter and total income reaching €15.4bn, representing a 9 per cent increase from the previous year, Santander achieved a record-breaking quarterly performance.
Its retail unit emerged as the primary revenue driver, up 13 per cent to €8bn. Meanwhile, its consumer business was up 4 per cent, its corporate and investment banking unit was up 5 per cent and its wealth management unit registered a 17 per cent increase.
Executive chair Ana Botin said that the results demonstrated “once again the value of diversification”.
However, Santander’s quarterly results were slightly tempered by the impact of the Spanish windfall tax on bank profits, costing the bank €335mn this year.
In line with its shareholder commitment, Santander disclosed plans to allocate €6bn towards dividends and buybacks this year. Its shares have risen by almost 50 per cent over the past 12 months to a six-year high.
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The City of London Corporation has warned that the UK risks losing its position as a leading destination for financial services investment unless a comprehensive package of reforms is implemented.
Foreign direct investment in the UK’s financial and professional services halved to £1bn in 2023, the City of London said on Tuesday. Despite the sharp decline in investment, the UK remains ahead of its European peers, according to City of London data.
Chris Hayward, policy chief of the City of London Corporation, stressed the necessity of reform to prevent a slide down the rankings.
“As this data shows, the UK continues to attract high levels of [foreign direct investment] in financial and professional services even as we see the heat of activity in the post-pandemic recovery begin to cool,” he said.
“However, we can’t rest on our laurels; in order to turn the dial on investment levels, we have to take a more strategic approach, with government and investors working together to build up our vital infrastructure, high-growth firms and our competitive sectors.”
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Uganda’s finance minister announced on Tuesday that the country has signed a deal with Saudi Arabia’s Islamic Development Bank for a $295mn loan to support road construction and other infrastructure projects.
Ugandan finance minister Matia Kasaija signed the loan agreement with IDB president Muhammad Al Jassar in Saudi Arabia’s capital Riyadh, Kaisaja said in a post on social media platform X.
This move highlights Uganda’s efforts to broaden its external funding sources, as discussions with the World Bank to resume lending have stalled.
Traditionally, the World Bank has been Uganda’s largest external lender. However, the institution halted new loans to the country following Uganda’s enactment of stringent anti-homosexuality legislation.
