Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

HSBC Asia investment bank head takes sabbatical as part of latest management shake-up

HSBC Asia investment bank head takes sabbatical as part of latest management shake-up

Gordon French began a sabbatical on April 15, is expected to explore ‘other opportunities’ at the bank. The management shake-up comes as HSBC CEO Noel Quinn realigns the global banking and markets business

HSBC’s investment banking head in Asia-Pacific took a six-month sabbatical beginning this month as part of chief executive Noel Quinn’s efforts to reshape the 155-year-old bank.

Gordon French, the Asia-Pacific head of its global banking and markets business and one of its highest-paid bankers in the region, began a sabbatical on April 15 and is expected to explore “other opportunities” within the group when he returns, according to an internal memorandum seen by the South China Morning Post.

The move is part of a realignment of the investment bank that would see regional head roles split between its global banking operations and its markets and securities services business.

Thierry Roland, the regional head for the business in Europe, will head the bank’s newly created RWA Optimisation Unit, which will dispose of assets that do not meet the bank’s return expectations, according to the memo. Andre Brandao will serve as the regional head for the Americas until the end of the year, with a further announcement expected later.



“The changes will enable pace of execution on the business plan to reshape, simplify and grow the business,” Greg Guyett and Georges Elhedery, the co-CEOs of the global banking and markets business, said in the internal memo on April 10.

An HSBC spokeswoman confirmed the contents of the memo on Tuesday.

David Liao, who formerly oversaw its mainland operations as China CEO, will serve as regional head of global banking and report to Peter Wong, HSBC’s China chairman, and Guyett, according to a separate memo from April 10.

Shares of HSBC declined 2 per cent to HK$39.25 in the morning trading session in Hong Kong on Tuesday.

The changes are part of a broad reorganisation and rethinking of the bank by Quinn, who replaced John Flint as CEO on an interim basis in August and won the job permanently last month. It is HSBC’s third major restructuring in a decade and comes as Quinn has reorganised the leadership team throughout much of the bank.

HSBC, one of three lenders authorised to issue currency in the city, had planned to eliminate as many as 35,000 jobs as part of an overhaul designed to cut annual costs by US$4.5 billion but was forced to delay those job cuts last month because of the “extraordinary impact” of the coronavirus pandemic.

The coronavirus, known as SARS-CoV-2, has infected more than 2.4 million people worldwide and forced major cities around the globe to shut down all but essential businesses to stem the spread.

HSBC said it decided to pause the “vast majority of redundancies” to reduce uncertainty for its employees in such a time of disruption. The bank also said in March that it would freeze hiring except for a “small number of frontline and business-critical roles and those already with written offers.”

The latest leadership changes come at a challenging time for the lender, which generated 84 per cent of adjusted pre-tax profit in Asia last year.

An 18-month trade war between the United States and China, months of street protests and the coronavirus pandemic have all severely damaged the economy of Hong Kong, its biggest market. Fitch Ratings cut the city’s debt rating on Monday as it expects the economy to contract by 5 per cent this year.

HSBC also has the biggest exposure among more than 20 banks who are owed about US$4 billion by Singapore oil trader Hin Leong Trading, which sought bankruptcy protection last week, according to a person familiar with the matter. HSBC has declined to comment on Hin Leong.

The bank also has faced a backlash from rebel investors in Hong Kong after it cancelled its final dividend for 2019 and suspended dividend payments this year at the request of its chief regulator, an arm of the Bank of England.

Quinn wrote to shareholders this month to explain the decision and reassure investors about its capital position. Senior managers, including Quinn, also waived their cash bonuses this year.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Budapest Central European Fashion Week Kicks Off
U.S. Celebrates Labor Day
Hungarian National Team Captain Scores Epic Goal
×