Ousting of HSBC CEO John Flint shows ‘increased ruthlessness’ of bank’s board, S&P says
- Board appears to be less tolerant of financial underperformance, S&P says
- A shift in strategy by the bank not likely, ratings agency says
The abrupt departure of HSBC chief executive John Flint shows the “increased ruthlessness” of HSBC’s directors and their unwillingness to tolerate middling performance by the bank, S&P Global Ratings said on Tuesday.
The unexpected change in leadership came on the same day that HSBC reported its pre-tax profit rose 4 per cent in a challenging second quarter and beat analysts’ expectations.
“The revamp of key positions indicates that the board has become less tolerant of relative financial underperformance, in our view,” S&P said in a bulletin published on Tuesday. “Still, we don't believe this ruthlessness suggests a broader strategic shift away from its approach to its balance sheet, which is generally more prudent and disciplined than most global banks.”
HSBC declined to comment on the S&P report on Tuesday.