HSBC is bracing for massive overhaul next week as interim chief executive’s future hangs in the balance
- HSBC is scheduled to announce a restructuring on February 18, its third major overhaul in a decade
- Noel Quinn has been interim chief executive since August 2019, replacing John Flint
From its headquarters near the Thames to its Asian hub by the South China Sea, HSBC Holdings is abuzz.
With days to go before the bank unveils a restructuring, trading desks and back offices are bracing for scenarios that could see the announcement of another reshuffle of senior management, a surprise new chief executive, withdrawals from businesses and job reductions across the globe. It will be the London-based lender’s third major overhaul in a decade, and it will be announced on Tuesday.
HSBC’s biggest market – Hong Kong – is also suffering through serial crises: anti-government protests in the former British colony, followed by coronavirus on the Chinese mainland. Then there’s the record low interest rates in many countries, which are hampering lenders around the globe.
Measures announced Tuesday are likely to include billion-dollar writedowns, cuts at trading desks, and a reduction in exposure to countries ranging from Turkey and Greece to Oman, people familiar with the matter say. Efforts to sell HSBC’s French retail business are progressing, and an overhaul of the underperforming US business is underway, the people said.
Since he was tapped to succeed the ousted John Flint last year, interim head Noel Quinn is battling fires on many fronts, including uncertainty about his own future. Last fall, Quinn told staff he was “certainly not intending, and was not asked, to be a caretaker.” Some analysts had expected he would have been confirmed as the full-time chief by now.