HSBC Holdings Plc is leaning towards appointing its next chief executive from a shortlist of internal candidates as it begins the hunt to find a successor to outgoing boss Noel Quinn.
CFO Georges Elkhedery and Nuno Matos, head of wealth and retail banking, are being considered as leading replacements for Quinn, who announced his resignation last month, according to people familiar with the situation. The bank hired an outside recruiting firm to compare them with outside candidates for the position, some of the people said, asking not to be identified discussing the internal process.
The search is just beginning and the board could still go in a different direction, the people said. An HSBC spokesman declined to comment.
The internal lineup is seen as strong and will help avoid a lengthy search to replace Quinn, as many external candidates are likely to have to complete a period of gardening leave before they can join. Chairman Mark Tucker said he expects to complete the process in the second half of the year.
Quinn announced last month that he was resigning, a surprise move as Europe’s largest lender grapples with worsening relations between China and the United States. During his tenure, Quinn undertook a series of strategic reviews, culminating in a plan to increase the bank’s investment in Asian businesses while cutting back in markets such as the US and France.
The company is committed to this strategy in the future, even as tensions between Beijing and Washington continue to escalate. An external candidate is more likely to be willing to present a new strategy, which has also made the board more willing to back an internal talent team, people familiar with the matter said.
Talent Cultivation
Elhedery, 50, took over as chief financial officer in early 2023. The Lebanon native rose through the ranks of HSBC’s markets division and spent several weeks shadowing Quinn before taking up his latest role.
In 2022, Elkhedery took a six-month sabbatical from the bank. He used this time to learn Chinese and – if he is chosen to replace Quinn – he will become the bank’s first Chinese-speaking CEO in modern times.
Some of HSBC’s biggest investors have long wanted the bank’s top management to have closer ties to Asia, where HSBC makes most of its revenue, according to people familiar with the matter. The board is aware of investor wishes on that front, the people said.
Matos, 56, was also a strong contender for the job, receiving a series of promotions that took the former Banco Santander SA chief executive from CEO of HSBC’s Mexico unit to head of its largest unit. The Portuguese native also moved from London to Hong Kong as part of the bank’s focus on Asia.
According to people familiar with the situation, headhunters are compiling a list of several external candidates. They include Charlie Nunn, a former HSBC executive who became CEO of Lloyds Banking Group Plc in 2021.
Nunn was seen as a potential successor to Quinn before he left HSBC after a decade at the bank. Before joining HSBC, he was a senior partner at McKinsey & Co. and previously worked at Accenture Plc.
Earlier this month, Nunn responded to a question about whether he was interested in becoming HSBC’s next boss, telling an audience at Bloomberg’s Sell Side Forum in London that he was focused on his current role.
“I have a new team,” Nunn said. “I’m really excited about the next few years at Lloyds.”
What Bloomberg Intelligence Says
JPMorgan alumnus Bill Winters’ experience at Standard Chartered shows that a strong external candidate may not be the best option. HSBC must demonstrate its ability to accelerate growth in Asia as franchising optimization is largely complete and we increasingly suspect that an internal candidate may be favored. George Elkhedery (CFO), Nuno Matos (CEO of Wealth and Personal Banking) and Gregory Guyette (CEO of Global Banking and Markets, ex-JPMorgan) are likely among Quinn’s potential successors.