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HSBC boss John Flint resigns 'by mutual agreement' HSBC boss John Flint resigns 'by mutual agreement'
(about 3 hours later)
HSBC chief executive John Flint has stepped down after the bank said it believed a change was needed “to meet the challenges” it faces. HSBC has unexpectedly parted ways with its chief executive, John Flint, less than 18 months after his appointment and said it could cut up to 5,000 jobs because of a weaker outlook.
The bank said in a statement that Flint, 51, had resigned the role “by mutual agreement with the board”, saying the bank needed a change at the top to address “a challenging global environment.” The bank, which has its headquarters in London, said the Flint decision was “mutual” and the board believed a change was needed to “meet the challenges” it faced.
He was promoted to CEO in February 2018 and has worked at the banking giant for 30 years. Flint, 51, was appointed in 2018 after a 30-year career at the bank. He will step down immediately but make himself available to the bank during the transition. Noel Quinn, the head of HSBC’s global commercial bank, will serve as the interim chief executive.
“Although not carrying out his day-to-day duties after today, he remains available to assist HSBC with the transition,” the bank added. The surprise news was announced alongside HSBC’s half-year results, in which the bank warned of a weaker outlook after the recent cut to US interest rates, simmering geopolitical issues and greater uncertainty around the Brexit outcome.
Noel Quinn, 57, who has been the head of HSBC’s global commercial banking unit since 2015, will be the interim chief executive until a successor is appointed. HSBC confirmed it was planning to cut up to 2%, or 4,700, of its 237,685-strong global workforce. The job cuts are expected to hit senior staff the hardest, helping to reduce salary costs by as much as 4%. The move is expected to bring full-year restructuring costs up to $700m (£576m).
HSBC warns of weak global economic outlook The lender said it had already spent $248m on severance after an unspecified number of job cuts in the first half of the year.
HSBC’s chairman, Mark Tucker, said: “On behalf of the board, I would like to thank John for his personal commitment, dedication and the significant contribution that he has made over his long career at the bank. It cautioned that while it was still maintaining its long-term targets, it “will not take short-term decisions that could jeopardise the long-term health of the business”.
Flint’s departure came as HSBC announced its first-half financial results for 2019, in which pre-tax profits rose 16% year-on-year. The lender also declared a further buyback of $1bn, defying some analysts’ expectations it might pause its strategy of returning extra capital to investors. HSBC said it made pre-tax profits of $12.4bn, up 16% year on year. It declared a further share buyback of $1bn.
“Today’s positive interim results particularly reflect John’s achievements as group chief executive.” HSBC’s chairman, Mark Tucker, said: “Today’s positive interim results particularly reflect John’s achievements as group chief executive.”
Tucker said that although HSBC “is in a strong position to deliver on its strategy”, a change of chief executive was necessary. Commenting on Flint’s abrupt exit, Tucker added: “In the increasingly complex and challenging global environment in which the bank operates, the board believes a change is needed to meet the challenges that we face and to capture the very significant opportunities before us.”
“In the increasingly complex and challenging global environment in which the bank operates, the board believes a change is needed to meet the challenges that we face and to capture the very significant opportunities before us,” he said. Flint said it had been a privilege to spend his entire career with HSBC and he was “proud of what we achieved together”.
Flint said it had been a privilege to spend his “entire career with HSBC” and that he was “proud of what we achieved together”. He said: “I have agreed with the board that today’s good interim results indicate that this is the right time for change, both for me and the bank. After almost 30 years with HSBC, I will be sad to leave but I do so looking forward to a new personal challenge and confident that our people will continue to serve the bank’s stakeholders in the best possible way.”
“I have agreed with the board that today’s good interim results indicate that this is the right time for change, both for me and the bank. HSBC said external candidates would be considered in the search for its next chief executive.
“After almost 30 years with HSBC, I will be sad to leave but I do so looking forward to a new personal challenge, and confident that our people will continue to serve the bank’s stakeholders in the best possible way.”
External candidates will be considered in the search for a new chief executive, the company said.
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