HSBC Appoints New Chairman

Hong Kong: Banking giant HSBC announced the appointment of a new chairman Monday as part of a management overhaul which will also see it choose a new CEO, after a massive drop in profits in 2016.

British businessman Mark Tucker will take over from current chairman Douglas Flint in October. Tucker is currently group chief executive and president of insurance group AIA.

He will lead the hunt for a new CEO for HSBC to replace Stuart Gulliver who is set to retire in 2018, the bank said in a statement to the Hong Kong exchange.

The changes come as HSBC profits were dealt a hammer blow last year, with the bank attributing the decline to protectionist fears under Donald Trump and uncertainties caused by Brexit when it announced its 2016 results last month.

That sent new shivers through markets already spooked by concerns over political stability in Europe, Brexit and US trade policies.

Shares in HSBC were up 2.3 percent in early afternoon trading.HSBC praised Tucker's "long track record of successful leadership of complex financial services businesses in both Asia and the UK" in its statement.

Before he took the helm at AIA, Tucker was head of insurer Prudential. Gulliver and Flint have led HSBC since 2010 in what has been a difficult period for the bank.

The duo were grilled by UK lawmakers in 2015 and apologised for "unacceptable" failings at HSBC's Swiss division following allegations the unit helped rich clients hide billions from the taxman.

HSBC was one of six major US and European banks that were fined a total of $4.2 billion by global regulators in a November 2014 crackdown for attempted manipulation of the foreign exchange market.

It was also fined $1.92 billion by US prosecutors in 2012 to settle allegations that it failed to enforce anti-money laundering rules exposing it to exploitation by drug cartels and terrorist organisations.

Since 2011, Gulliver and Flint have announced more than 87,000 job cuts and exited more than 80 businesses.HSBC thanked Flint for his "dedicated service" in Monday's statement.

"Douglas has skilfully led HSBC through the turbulent times of the financial crisis and its aftermath," it said. "As an industry leader, he has played a key role in contributing to the development of the post-crisis regulatory framework."

Shoot

Trending News

Xiaomi pumps Rs 3,500 crore into India business

BlackBuck's out to raise $150M in new round, valuation likely to jump to $800 M

With $21 Billion, Azim Premji among world’s top philanthropists

Google agreed on a $45M exit package for India-origin exec accused of sex abuse

HSBC pegs Zomato's valuation at $3.6 billion ahead of Swiggy

PayU in talks to acquire online payments firm Wibmo for $60M

Quikr close to acquiring refurbished goods marketplace Zefo in all-stock deal

What life looks like after a layoff from an IT company

General Atlantic & Tencent pump in another Rs 80 Cr in ed-tech unicorn Byju's

US Senator Warren vows to break up Amazon, Facebook, Google

SoftBank extends tech reach with $5B Latin American fund

Coverfox hits the market to raise $50M in new financing round

Cognizant faces US lawsuit alleging discrimination

China's Huawei sues US over federal ban on using its products

Germany's Delivery Hero acquires Zomato's UAE biz, invests in India ops

Ahead of deadline, debate rages on e-commerce policy

Flipkart rejigs reporting of Myntra-Jabong head Amar Nagaram

Grofers raises fresh funds from existing investors, valuation hits $425M

Sachin Bansal invests Rs 250 Cr each in NBFCs Altico & IndoStar: Report

I-bank Wolet files $800k suit over Flipkart’s Upstream buy

Flipkart FY18 revenue up 50%, but losses grow 5x

Pine Labs in talks to acquire Amazon-backed Qwikcilver for $100M

India can become 2nd largest 5G market in 10 years: Huawei

Alibaba rival Pinduoduo seeks to raise $1.5B

Twitter Q4 revenue grows to $909M as video ad sales surge

Mukesh Ambani to invest $1.4B in West Bengal, will help e-commerce expansion

Etail may lose Rs 40,000 crore, retail to get a 3rd of it

Steadview Capital invests $74M in Ola valuing it at around $6B

Byju’s ups revenue to Rs 490 cr in FY 18, losses drop by half

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities