HSBC Holdings plc (LON: HSBA) have updated the market on a few senior management changes on Monday morning.
Shares of HSBC trade at 561p. (-0.071%) 9/12/19 12:59BST.
HSBC have seen a turbulent 2019, as the firm reported a 31% rise in its first quarter profits as reported in May.
The FTSE100 listed bank reported a profit after tax that amounted to $4.9 billion, up 31%. Additionally, reported revenue was up 5%, whilst adjusted operating expenses were up 3.2%
Later in the year, in the middle of November HSBC announced that they would be cutting jobs in their UAE operations following a slump in trading.
The firm made gains however, at the end of November when HSBC saw their private banking division boast double digit revenue growth.
Assets managed by HSBC’s private banking unit rose 9.4% in the first nine months of 2019 to $338 billion (£263 billion), while revenue rose 4.6% versus the same period a year earlier to $1.4 billion. The unit is the smallest contributor to group revenue at 3%.
Today, the firm updated the market by announcing the appointment of a new Chief Operating Officer in John Hinshaw.
The changes also include the appointment of Pam Kaur, currently head of Wholesale Market & Credit Risk at the bank, as group chief risk officer from the start of 2020.
Mark Moses will hand over responsibilities to Kaur before departing the board and stepping down as group chief risk officer at the end of 2019. He will remain at HSBC supporting the CEO before departing the bank completely in December 2020.
Samir Assaf will leave HSBC’s Global Banking and Markets division at the start of March 2020, taking a new role as hair of Corporate & Institutional Banking.
HSBC Group Chief Executive Noel Quinn said: “I’d like to thank each of these individuals for their extraordinary dedication and commitment to the bank over many years. In their respective successors we have talented and capable individuals that I’m looking forward to working closely with as we execute plans for the next phase of the bank.”
HSBC’s current COO, Andy Maguire, will retire at the end of January but will remain with the group until the end of his notice period on June 9 in order to assist with the handover.
Hinshaw will join the bank as group COO-designate on Tuesday before stepping into the full role in February.
The move comes as part of HSBC’s plans to turnaround fortunes in a global banking and finance slump.
This was illustrated when Moody’s cut the UK Banking sector outlook from stable to negative amid a host of political and economic uncertainties.
Rivals such as Lloyds Banking Group PLC saw their shares crash following a poor quarterly update. The firm saw a 97% fall in pre-tax profit for the third quarter from last year.
Additionally, profit before tax for the third quarter fell 97 percent to 50 million pounds from £1.82 billion last year. Lloyd’s are one of the banks however that have appeared to gain some ground, after posting revenue gains in trading updates after gloomy performance.
Another noteworthy performance came from Deutsche Bank who have collapsed across 2019, with the firm now fighting to stay afloat in a cutthroat market. Deutsche Bank saw a €3.1 billion loss at the end of July, following a strategy which pledged transformation after they axed 18,000 jobs at the end of June.
Certainly, the efforts made by HSBC to turnaround business slumps does come at a good time. Both the senior board and shareholders will remain optimistic till all of the changes are fully implemented, and subsequent results will be used to scrutinize the work of the new appointments.
