Amid Restructuring Plans, HSBC Banks Considers Jean Mustier as Chief Executive
Drooping profits in the US and Europe have encouraged HSBC Banks to shift its focus to the Asia and the Middle East regions as a part of its global restructuring plan. Besides the large scale shifts, two people aware of the matter have reported that CEO of UniCredit, Jean Pierre Mustier has been decided as a contender for becoming the Chief Executive of HSBC Banks.
Sources revealed that the interim Chief Executive, Noel Quinn is considered as a potential competitor of Mustier. Mustier’s appointment for the position, will initiate a series of changes at the top of European banks.
The UniCredit CEO has received extended appreciation after he took the position in 2016. Post his appointment, he restructured the bank, removed unwanted businesses, cut thousands of jobs and repaired the balance sheet of the Italian lender.
The planned restructuring of HSBC Banks had been recently unveiled by Noel Quinn. Reports claim that the bank aims to cut 35,000 jobs from its existing count of 235,000. The move is seen as an attempt by the bank to bring its returns closer to what other US banks are generating. The British investment bank is also planning to shed $100 billion of assets to achieve its aims.
Speaking about the restructuring plans, Quinn earlier highlighted that he did not want to be a ‘caretaker’ leader of the firm at a time when profits reflect drop. Investors of HSBC Banks have expressed scepticism about Quinn’s decision of a radical overhaul by an interim Chief Executive.
Dismissing all investor doubts, Quinn stated that the changes introduced are important. Moreover, he agrees that the overhaul is one of the deepest simplification and restructuring programs in the bank’s history.
Reports released by HSBC Bank this year show profit before tax of US$13.3 billion, which is nearly US$7 billion less than 2019. Despite being a US-based bank, more than half of the banks business revenue comes from the Middle East and Asia. As per Quinn, the banking sector giant is currently enjoying a “strong position” in the Middle East, where the it eyes a lot of potential. The bank has recently reported a 17.4 percent increase in profits in the Middle East region.
At a time, when HSBC Banks is optimistic about opportunities in the Middle East, most lenders in the banking sector, including – Emirates NBD, Abu Dhabi Commercial Bank and First Abu Dhabi Bank, are laying-off employees.
Even though Quinn is optimistic about the restructuring plan, the job cuts are sure to impact the lives of thousands of employees, who will soon be unemployed!
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