Monday 09 December 2019 12:35 pm

HSBC shakes up senior management after ‘unacceptable’ third quarter

HSBC has replaced its investment banking boss and group chief operating officer in a raft of changes due to take effect in 2020.

Investment banking chief Samir Assaf will step down as chief executive of global banking and markets in March, after 10 years in the role. He will take a new role as chairman of corporate and institutional banking.

Georges Elheder and Greg Guyett, head of global markets and global banking respectively, will share Assaf’s role and both will be appointed to the board.

The announcement confirms reports in November that Assaf was set to move into a non-executive role, with acting chief executive Niall Quinn unhappy with the bank’s performance.

In October, HSBC posted a 19 per cent drop in third-quarter profit, a performance that Quinn branded as “not acceptable”. HSBC is set to announce its full-year results in February.

Andy Maguire will also retire as Group chief operating officer in January and will leave HSBC in June. He will be replaced by John Hinshaw, the former executive president of American technology firm Hewlett Packard.

Bloomberg reported this morning that Quinn’s restructuring is a bid to be appointed as chief executive on a permanent basis, after John Flint made a shock departure in August.

Goodbody analyst John Cronin said: “The musical chairs look set to continue, and we look forward to hearing the refreshed strategy on 18 February with, potentially, news on the identity of the new permanent chief executive.”

HSBC has also appointed Pam Kaur as group chief risk officer after stepping down from her role as head of wholesale and credit risk on 1 January. She will replace Marc Moses, who is set to retire on 9 December.

In a statement released this morning, Quinn thanked staff for their contribution to the bank.

He said: “In their respective successors we have talented and capable individuals that I’m looking forward to working closely with.”