HSBC Holdings plc ( HSBC ) shares are rising higher after the company’s first-quarter results and the surprise retirement of its Chief Executive Noel Quinn, who has led the company for about five years, overseeing significant asset sales worldwide.

The bank has initiated a formal process to find Quinn’s successor, considering both internal and external candidates. Chief Financial Officer Georges Elhedery, who assumed the No. 2 position last January, emerges as a top internal contender, according to a report from Reuters.

Under Quinn’s leadership, HSBC ( HSBC ) successfully simplified and focused the bank, most recently with the sale of the Canada and Argentina operations, per the company’s statement.

Also Read: HSBC Initiates Job Cuts At Its Asia Investment Bank

Quinn will continue as CEO until the new leader assumes office, providing support during the transition until April 30, 2025. Mark Tucker, HSBC ( HSBC ) Chairman, aims to finalize the succession process by the second half of the year, expressing support for Quinn’s decision, the report added.

Quinn, who joined HSBC ( HSBC ) in 1987, played a pivotal role in addressing challenges amidst the pandemic and geopolitical tensions.

The bank reported a pretax profit of $12.7 billion for the quarter ended March. HSBC ( HSBC ) announced up to $3 billion in additional share buybacks.

The financial major saw a 3% increase in its first-quarter revenue to $20.8 billion. The company’s 2024 guidance remains unchanged, including a mid-teens return on average tangible equity and continued cost discipline.

“We have announced a total of $8.8bn of distributions, consisting of a first interim dividend for 2024 of $0.10 per share, a special dividend of $0.21 per share from the Canada sale proceeds, and a new share buy-back of up to $3bn,” said Quinn.

Also Read: Adios Argentina: HSBC Divests Banking Operations In Argentina For $550M

Price Action: HSBC ( HSBC ) shares are trading higher by 4.58% at $44.11 in premarket at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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