HSBC ousts CEO John Flint after less than 18 months at the helm
The lender said that CEO John Flint had resigned ‘by mutual agreement with the board’ on Monday, with the bank also announcing thousands of job cuts amid a surge in half-year profits.
HSBC has parted ways with its CEO John Flint after just 18 months at the helm, with him resigning ‘by mutual agreement with the board’.
The move likely shocked investors, as it coincided with the lender releasing a strong set of half-year results that saw profits soar and the bank even credit Flint for its good performance.
Noel Quinn was appointed as interim group CEO while the bank searches for a full-time replacement.
HSBC results: key figures
HSBC recorded post-tax profit of $9.9 billion, up 18.1%, and pre-tax profit of $12.4 billion, representing a 15.8% increase compared with the same period a year prior.
The lender benefited from a $828 million dilatation gain associated with the completion of the merger between the Saudi British Bank and Alawwal Bank.
HSBC reported earnings per share of $0.42, with a return on average tangible equity climbing 150 basis points to 11.2%, including c.120bps favourable impact of the merger. Another upside of the deal was that its common equity tier 1 (CET1) ratio rose by 30bps from December 31 2018 to 14.3%.
The bank also announced that it intends to initiate a share buy-back of up to $1bn, which it will commence shortly.
Practise trading HSBC and other banking stocks with an IG demo account.
HSBC downgrades 2020 financial outlook
Despite the strong set of half-year results, the bank said that it no longer expects to achieve its 6% return on tangible equity (RoTE) target in the US by 2020.
‘Interest rates in the US dollar bloc are now expected to fall rather than rise, and geopolitical issues could impact a significant number of our major markets,’ HSBC said.
‘In the near term, the nature and impact of the UK’s departure from the European Union remain highly uncertain,’ the bank added.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
