HSBC boss John Flint axed after less than 18 months triggering shock in City

HSBC lost its reputation for steady conservatism today as it suddenly axed chief executive John Flint after less than 18 months in a shock move designed to galvanise faster growth.

The FTSE 100 giant, chaired by hard-hitting finance veteran Mark Tucker, said Flint would be replaced on an interim basis by Noel Quinn, head of HSBC’s global commercial bank. The exit sent HSBC shares down 2%.

Flint, an HSBC lifer who worked his way up from a trainee over nearly 30 years, was hired by Tucker to replace Stuart Gulliver in February 2018 with a promise to turn around the bank.

However, recent months saw frustration set in both in the boardroom and at senior management levels over the slow pace of change. The board decided unanimously that he had to go and the decision was finalised in a meeting last night.

Puzzlement over the exit was heightened as it came shortly before the bank reported better-than-expected financial figures. Tucker said the board wanted to make the change at a time of strength rather than weakness for the bank.

HSBC faces rising challenges such as the US-China trade war and US interest rate cuts. That had triggered concerns the bank needed a stronger hand at the helm.

In China, HSBC has faced scrutiny over its involvement in the arrest of Huawei finance chief Meng Wanzhou, with reports its possible co-operation with US authorities had infuriated the Chinese government. Tucker denied this was connected to Flint leaving.

He said: “The environment is becoming more complex and challenging. We and John feel a change is needed to make the most of the opportunities around us. This is about the future and how we see the future.

Investec analyst Ian Gordon said: “He’s not been axed in response to a specific event. The change in chief executive reflects the focus on sharper execution being required.”

Half-year results showed pre-tax profits rose 16% to $12.4 billion and the bank unveiled a fresh $1 billion buyback for shareholders.