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In its filing with the Hong Kong stock exchange, HSBC said the decision to appoint Nelson followed a robust process that considered both internal and external candidates. The statement did not elaborate.
Nelson will oversee the further pursuit of a refined strategy under Elhedery following a sweeping restructuring he undertook in October last year to scale back Western operations and deepen the lender’s focus on Asia, its biggest market.
Moreover, geopolitical uncertainties will remain a challenge for Nelson’s team as HSBC tries to grow its business in China at a time of escalating trade tensions with the United States and other major economies.
The bank said at its half-year earnings the impact of U.S. President Donald Trump’s trade tariffs could cause it to miss its profitability target of a mid-teens return on tangible equity in future years.
‘BANKING CREDENTIALS’
Nelson has been serving as interim chair since October 1 and joined the lender’s board in September 2023. He was the former head of global banking at KPMG and has expertise in UK and international finance and auditing.
“Since assuming the role of interim group chair, Brendan has demonstrated his excellent leadership capabilities backed by his strong banking and governance credentials,” said Ann Godbehere, the senior independent director who led the replacement process.
Tucker was AIA’s chief executive and president between 2010 and 2017.
“I look forward to continuing to work with the board, Georges and the wider management team as we deliver on our strategic and financial objectives,” Nelson said in the Hong Kong exchange filing.
As the new chairman, Nelson will also be tasked with supervising Elhedery’s efforts to grow the bank’s fee-based income to make up for falling interest income as central banks cut policy rates.
SWEEPING RESTRUCTURING
HSBC shares were mostly flat in Hong Kong in the early afternoon session on Wednesday, in line with the morning trading ahead of the announcement of Nelson’s appointment.
In his remarks at the FT’s Global banking summit in London on Tuesday, Elhedery said Nelson did not want to commit to the job for six to nine years at the current stage of his career. HSBC didn’t immediately comment on Elhedery’s remark.
Elhedery took over as HSBC CEO in September 2024 and has since launched a sweeping restructuring of the bank, slashing back its presence in Western markets, cutting out layers of management and doubling down on a strategic pivot to Asia.
The cuts included exiting its mergers and acquisitions and some equities businesses in Europe and the Americas.
Nelson will remain as the chair of HSBC’s group audit committee until the bank’s 2025 results are published in February 2026, the bank filing said, adding, he would then be replaced in that role.
Reporting by Himanshi Akhand, Sneha Kumar, Tommy Reggiori Wilkes, Lawrence White, Selena Li; writing by Scott Murdoch. Editing by Sumeet Chatterjee and Shri Navaratnam
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