HSBC announced Wednesday (July 17) that its chief financial officer, Georges Elhedery, would become the firm's next CEO effective Sept. 2.

In a press release, the firm said that Elhedery would replace current CEO Noel Quinn, who would step down from the role and as executive director of its board. 

HSBC Group chair Sir Mark Tucker confirmed Elhedery's promotion, congratulating him for such. He also thanked Quinn for his work for the bank for 37 years and his leadership for five of it. 

The BBC reported that Quinn was pushed to the CEO role on an interim basis in 2019 after his predecessor John Flint was ousted from the role. He eventually was appointed permanently in March 2020 and oversaw the sale of several of the bank's businesses globally. 

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Elhedery a Sign of Continuity for HSBC

Reuters reported that, while the bank considered external candidates, it has traditionally opted to appoint its CEO from within its own leadership ranks in order to maintain continuity. 

It is understood that Elhedery's appointment came as the bank tried to transition from restructuring to growth at a time of interest hikes and geopolitical tensions.

Hargreaves Lansdown equity analyst Matt Britzman said that continuity is essential for most investors, and that HSBC is in need of such after the battles its board faced in recent years. 

Iain Pyle, a senior investment director for abrdn, said that the incoming CEO made a good impression on the market as CFO, including being a "clear communicator."

In May, HSBC defeated a resolution proposed by Chinese insurance giant Ping Anm which owns 8.9% of the bank and other Hong Kong-based shareholders seeking to have a spin-off of its lucrative Asia business. 

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