HSBC Bank has named Mark Tucker as its chairman, to succeed Douglas Flint.
HSBC Shares Climb After Bank Appoints Mark Tucker of AIA as Chairman
Mark Tucker, an insurance executive with the AIA Group Ltd. and the former CEO of Prudential Plc. with take up his new position as HSBC chairperson the on October 1.
Tucker is considered an outsider and will now be at the helm of the biggest bank in Europe as HSBC continues to overhaul its management.
Following Tucker’s exit, Ng Keng Hooi who is the AIA Region CEO, will become the insurance giant’s designated CEO.
In his role as HSBC chair, Tucker’s greatest task will be to find a suitable successor to CEO Stuart Gulliver, who has led the bank for over six year.
Gulliver’s successor is expected to be announced in 2018, HSBC said in a statement.
The London based HSBC is amongst the largest lenders in the world with an estimated 235,000 employees spread out across 70 countries.
The bank is restructuring as part of stringent regulations, with new laws requiring lenders to separate their retail operations from their investment bank operations.
The lender is also being closely watched by the Justice Department in the US after it helped drug cartels in South America to launder money. It also faces potential for a slowdown in post Brexit UK and equally slow growth in China, both its two most important markets.
As the bank’s chair, Tucker will bring to the firm executive experience of over two decade mostly from Asia. This is seen as crucial as it may help HSBC position itself better for the region.
He took over AIA in 2010 and over the years, the insurer has seen a massive growth in new business, an indication of the projected profitability of new policies.
Hung Young, managing director at Aberdeen Asset Management Plc Asia said, “He has done a good job at AIA. Let’ see how it pans out but I think he could be an inspired appointment.”
Following the news, HSBC shares climbed 0.9 percent to 672.7 pence in London trading, making its total advance for this year so far to 2.4 percent. In Hong Kong, AIA shares dropped 3 percent, the worst performance since December.
Outgoing chair, Flint and CEO Gulliver announced in 2011that HSBC would cut over 87,000 job and has so far exited over 80 businesses, which has seen a significant reduction in the lender’s global footprint.
The executives have been under pressure by stakeholders due to dwindling profitability and historically low interest rate.