HSBC’s direction in question after Elhedery’s sprint to CEO contender

HSBC’s direction in question after Elhedery’s sprint to CEO contender

LONDON/SINGAPORE - Georges Elhedery's appointment as HSBC's chief financial officer caps a journey that's taken him from war-torn Lebanon to frontrunner for the top job at Europe's biggest bank. It’s also surprised investors and raised questions about HSBC’s direction.

Known at HSBC for his strategic vision more than for his accounting skills, Elhedery has climbed the ranks of HSBC’s investment bank since joining in 2005. With his latest promotion the 48-year-old is just one step away from the top role.

"It was a surprise to us,” said Hugh Young, Asia chairman of Aberdeen Standard Investments, one of HSBC's top 25 shareholders. CEO Noel Quinn has done a good job but investors are impatient for faster progress, Young said.

Elhedery’s move to CFO comes at a difficult juncture for HSBC. Since Quinn formally took over as CEO in March 2020, HSBC shares have dropped nearly 10%, and the company has been caught up in political tensions between the West and China.

The bank is under pressure from its biggest investor Ping An to explore options, including listing its Asia business, a move that HSBC has rebuffed.

The bank’s performance isn’t helping.

HSBC's profits slid 42% in the third quarter as bad loans rose in the face of