HSBC has announced the appointment of Georges Elhedery as its new group chief executive, effective 2 September 2024.

The 50-year-old Lebanese-born executive, who currently serves as the bank's chief financial officer, will succeed Noel Quinn, who is stepping down after five years at the helm.

Sir Mark Tucker, HSBC Group chairman, praised Elhedery's appointment, stating: "He is an exceptional leader and banker who cares passionately about the Bank, our customers, and our people. He has a track record of leading through change, driving growth, delivering simplification, containing costs and brings a strong focus on execution."

Elhedery, who joined HSBC in 2005, expressed his gratitude for the opportunity, saying: "I am deeply honoured by the trust placed in me to lead this great institution into the future. Working together with our talented team, I look forward to delivering exceptional value to our clients and investors by driving strong performance on a sustainable growth trajectory."

The appointment comes at a crucial time for HSBC, as it navigates geopolitical tensions between the West and China, while also facing challenges in sustaining growth as interest rate hikes potentially plateau. Industry analysts view Elhedery's selection as a move towards continuity in the bank's strategy.

Elhedery's remuneration package includes a base salary of £1,376,000 per annum, a fixed pay allowance of £1,700,000 per annum, and a pension allowance of £137,600 per annum. He will also be eligible for discretionary variable pay, including an annual incentive award up to 215 per cent of base salary and a long-term incentive award up to 320 per cent of base salary.

The new chief executive will face several challenges, including managing HSBC's exposure to China's ongoing bad loans crisis and delivering on growth ambitions in Asia amid slowing economic growth in the region. Despite having limited direct work experience in Asia, Elhedery reportedly learned Mandarin during a recent sabbatical, potentially aiding his navigation of the bank's crucial Asian markets.

HSBC's shares remained flat in London and Hong Kong following the announcement, with the bank's stock having risen 7 per cent this year, underperforming the broader European banking sector.

As Elhedery prepares to take the reins, the banking giant is set to report its interim results on 31 July, providing further insight into the financial landscape he will inherit as the new chief executive of one of the world's largest banking and financial services organisations.

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