# HSBC’s direction in question after Elhedery’s sprint to CEO contender Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-26 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: HSBC CFO Georges Elhedery: A Journey of Surprises and Challenges Meta Description: Learn about Georges Elhedery's rise from war-torn Lebanon to becoming a frontrunner for the top job at HSBC. Analysts and investors surprised by his URL: https://financedigest.com/hsbcs-direction-in-question-after-elhederys-sprint-to-ceo-contenderhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-25t174609z1lynxmpei9o0rvrtroptp4hsbc-cfo-1736814974082-compressed.jpg) By Lawrence White, Sinead Cruise and Anshuman Daga LONDON/SINGAPORE (Reuters) -Georges Elhedery’s appointment as HSBC’s chief financial officer caps a journey that’s taken him from war-torn Lebanon to frontrunner for the top job at Europe’s biggest bank. It’s also surprised investors and raised questions about HSBC’s direction. Known at HSBC for his strategic vision more than for his accounting skills, Elhedery has climbed the ranks of [HSBC’s investment bank](https://www.financedigest.com/hsbc-acquires-british-arm-of-stricken-silicon-valley-bank.html "HSBC acquires British arm of stricken Silicon Valley Bank") since joining in 2005. With his latest promotion the 48-year-old is just one [step away from the top](https://www.financedigest.com/5-steps-hiring-top-talent-youre-just-start.html "5 steps to hiring top talent when you’re just a start-up ") role. It was a surprise to us,” said Hugh Young, Asia chairman of Aberdeen Standard Investments, one of [HSBC’s top 25 shareholders](https://www.financedigest.com/hsbc-board-recommends-shareholders-vote-against-spin-off-resolution.html "HSBC board recommends shareholders vote against spin-off resolution"). [CEO Noel Quinn has done a good job but investors](https://www.financedigest.com/bayer-hits-8-month-high-as-investors-welcome-ceo-change.html "Bayer hits 8-month high as investors welcome CEO change") are impatient for faster progress, Young said. Elhedery’s move to CFO comes at a difficult juncture for HSBC. Since Quinn formally took over as CEO in March 2020, HSBC shares have dropped [nearly 10%](https://www.financedigest.com/air-treatment-products-market-is-projected-to-expand-at-nearly-10-cagr-over-the-2021-2031.html "Air Treatment Products Market is projected to expand at nearly 10% CAGR over the 2021-2031"), and the company has been caught up in political tensions between the West and China. The bank is under pressure from its [biggest investor](https://www.financedigest.com/top-ten-biggest-mistakes-by-novice-investors-and-how-to-avoid-them.html "TOP TEN BIGGEST MISTAKES BY NOVICE INVESTORS – AND HOW TO AVOID THEM") Ping An to explore options, including listing its Asia business, a move that HSBC has rebuffed. The [bank’s performance isn’t](https://www.financedigest.com/isnt-it-time-open-banking-delivered-for-businesses.html "Isn’t It Time Open Banking Delivered for Businesses?") helping. HSBC’s [profits slid 42% in the third quarter as bad loans rose](https://www.financedigest.com/zur-rose-delays-profitability-break-even-to-2024.html "Zur Rose delays profitability break-even to 2024") in the face of a darkening global economic outlook. The bank also alarmed [investors by cutting its 2023 forecast for net interest income despite](https://www.financedigest.com/despite-the-headwinds-investors-have-important-reasons-to-be-cheerful.html "DESPITE THE HEADWINDS, INVESTORS HAVE IMPORTANT REASONS TO BE CHEERFUL") a benign interest rate environment, sending its shares nearly 7% lower on Tuesday. HSBC declined to comment for this article, as did Elhedery through an HSBC spokesperson. Quinn earlier told Reuters: “There is no change in [strategy as a consequence of these leadership changes.” He said the London-headquartered bank](https://www.financedigest.com/attacking-banking-and-fintech-fraud-head-on-through-ai-infused-strategies.html "Attacking Banking and Fintech Fraud Head-On Through AI-Infused Strategies ") had succession in mind. Under CFO Ewen Stevenson, HSBC has been trying to improve [profitability by exiting business and cutting costs](https://www.financedigest.com/suedzucker-quarterly-profits-surge-73-5-despite-cost-rise.html "Suedzucker quarterly profits surge 73.5% despite cost rise"), a task some questioned whether Elhedery would be most adept at. One person familiar with Elhedery said he was a skilled operator but might lack the accounting expertise typically associated with the [CFO role](https://www.financedigest.com/the-evolving-role-of-the-cfo-2.html "The evolving role of the CFO"). Elhedery’s [strengths were much more in strategy and people management](https://www.financedigest.com/reckon-software-goes-from-strength-to-strength-with-appointment-of-new-partner-development-manager.html "Reckon Software goes from strength to strength with appointment of new Partner Development Manager"), another source said. Analysts too expressed surprise at the jettisoning of Stevenson, [seen as a safe pair of hands who had steered the bank through a period of restructuring as it tried to cut](https://www.financedigest.com/icrc-to-cut-some-1500-jobs-as-humanitarian-budgets-seen-sliding.html "ICRC to cut some 1,500 jobs as humanitarian budgets seen sliding") costs and trim its businesses around the world. It’s very disappointing to hear that Ewen is stepping down, he has had a [transformational impact on HSBC’s cost](https://www.financedigest.com/managing-the-cost-of-digital-transformation-with-saas-optimisation.html "Managing the Cost of Digital Transformation with SaaS Optimisation") discipline, bringing much-needed credibility to its financial targets and execution,” said Ian Gordon, analyst at Investec. CIVIL WAR Born in Beirut during Lebanon’s civil [war that split its capital city into Christian East](https://www.financedigest.com/russia-sharply-scales-back-far-east-war-games-with-china.html "Russia sharply scales back Far East war games with China") and Muslim West, Elhedery grew up with a retail banker father and teacher mother, based on past interviews he has given. Elhedery moved to Paris to study [engineering at the École Polytechnique and took a postgraduate degree in statistics and economics](https://www.financedigest.com/jpmorgan-targets-more-of-germanys-mittelstand-economic-engine.html "JPMorgan targets more of Germany’s Mittelstand economic engine"). He began his career in [banking as a rates](https://www.financedigest.com/bank-of-englands-mann-doubles-down-on-backing-for-rate-hikes.html "Bank of England’s Mann doubles down on backing for rate hikes") trader, joined HSBC in 2005 in the Global Banking and Markets division, and rose through the ranks. In 2016, he took over the Middle East, North Africa and Turkey region managing 10,000 staff across all the bank’s [business lines and overseeing risk](https://www.financedigest.com/aon-assists-freddie-mac-to-reach-5bn-risk-transfer-milestone-for-u-s-mortgage-credit-business.html "AON ASSISTS FREDDIE MAC TO REACH BN RISK TRANSFER MILESTONE FOR U.S. MORTGAGE CREDIT BUSINESS"), financial crime, compliance and capital management. In 2020, he became co-head of the Global Banking and Markets business, the division which houses HSBC’s trading and [investment banking advisory businesses](https://www.financedigest.com/why-investing-in-employee-health-can-be-good-for-business.html "Why investing in employee health can be good for business"), taking over from fellow Lebanese-born, Paris-educated banker Samir Assaf. He surprised colleagues at HSBC this year by announcing a sabbatical, characterised at the time as a [break to spend time with his family and recharge his batteries](https://www.financedigest.com/hyundai-breaks-ground-on-5-5-billion-u-s-ev-battery-plant.html "Hyundai breaks ground on .5 billion U.S. EV, battery plant"). This came as executives were moving to [Hong Kong](https://www.financedigest.com/citadel-accelerates-hiring-push-in-hong-kong-and-london.html "Citadel accelerates hiring push in Hong Kong and London"), as part of a wave of relocations by HSBC of senior roles to the bank’s biggest market. His co-head of the [investment bank Greg Guyett was left in sole charge of the business](https://www.financedigest.com/analysis-uk-crisis-forces-off-kilter-businesses-to-halt-investment.html "Analysis-UK crisis forces ‘off kilter’ businesses to halt investment"). On his [return this September Elhedery said he would focus on working on projects with CEO](https://www.financedigest.com/factbox-five-facts-about-returning-ubs-ceo-sergio-ermotti.html "Factbox-Five facts about returning UBS CEO Sergio Ermotti") Quinn. A regular fixture at the bank’s [Diversity and Inclusion](https://www.financedigest.com/holding-a-mirror-up-to-the-finance-industry-on-diversity-equity-inclusion-dei.html "Holding a mirror up to the finance industry on Diversity, Equity & Inclusion (DEI)") events, according to one person, Elhedery has been seen taking equal interest in the needs of junior staffers as much as senior ranks. He runs 10 kilometres before [work every day](https://www.financedigest.com/no-more-five-working-days-how-getting-paid-immediately-can-transform-black-friday-for-merchants.html "No more ‘five working days’ – how getting paid immediately can transform Black Friday for merchants"), according to one of his former employees. That [says everything about the kind of man](https://www.financedigest.com/soccer-casemiro-intent-on-joining-man-united-ancelotti-says.html "Soccer-Casemiro intent on joining Man United, Ancelotti says") he is, this banker told Reuters. [(Reporting By Lawrence White](https://www.financedigest.com/white-bullet-releases-ad-funded-piracy-report-for-world-intellectual-property-organisation-wipo.html "White Bullet releases Ad Funded Piracy Report for World Intellectual Property Organisation (WIPO)"), Sinead Cruise and Anshuman Daga, additional reporting by Pamela Barbaglia. Editing by Jane Merriman) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---