With markets melting down and the global economy headed toward recession, HSBC Holdings picked a known quantity to lead it through the mayhem.
Noel Quinn, a 33-year-veteran of the lender and interim chief executive for the past seven months, was named to the post full-time minutes after the British government announced a “wartime” spending effort to counter the coronavirus. The lender's shares fell 0.9 per cent in Hong Kong, while the benchmark Hang Seng Index dropped 4.2 per cent.
The appointment caps a rise from obscurity that makes him a pivotal executive in efforts to keep worldwide commerce from succumbing to the effects of the global pandemic. HSBC, which calls itself the world’s leading trade finance bank, is Europe’s largest financial company by market value and the biggest international lender in China.
Mr Quinn’s “primary challenge will be to provide ongoing liquidity support to customers in tandem with government support schemes,” said John Cronin, an analyst at Goodbody Stockbrokers in Dublin.
Even before the stunning fallout from the virus paralysed economies around the world, HSBC chairman Mark Tucker’s chief executive search had grown fraught. The lender had approached at least three high-profile outsiders - former Citigroup bankers James Forese and Stephen Bird and UniCredit SpA’s Jean Pierre Mustier.
By sticking with Mr Quinn, Mr Tucker went with what insiders call a safe pair of hands who has impressed directors by acting decisively since John Flint was ousted in August. Mr Tucker was dissatisfied that Mr Flint was not acting urgently enough to revive growth at an Asia-focused lender that has been unable to produce a better return.
“In the last few months Noel has worked closely with the board to agree the key actions required to build and enhance performance on a sustainable basis,” Mr Tucker said in a statement on Tuesday.
Mr Quinn reorganised the executive ranks and last month unveiled a revamp that looked set to cut about 35,000 jobs and numerous underperforming businesses.
“It seemed that they were looking for external candidates,” said Eric Moore, portfolio manager at Miton Group in London referring to Mr Quinn’s appointment. “The strategy is set, and maybe he can bring a bit of continuity. But with the prospect of global downturn, he will have to deliver more.”
Unlike several of his predecessors, Mr Quinn isn’t a product of HSBC’s elite international manager cadre that traditionally produces its leaders. He attended Birmingham Polytechnic in central England before training as an accountant.
His first job was digging holes on a building site and his banking career began at Forward Trust, a financing and leasing unit of Midland Bank, the UK lender that HSBC bought in 1992. He spent the next two decades working his way up the commercial-banking business, spending much of his time in Asia, before emerging at the top of the unit in late 2015.
Now at the top of the pyramid, Mr Quinn earns a base salary of £1.27 million pounds ($1.5m) as well as £1.8m pounds in fixed allowances. His bonus can reach £2.7m pounds, and he’ll get a long-term award of almost £4.1m pounds. Flint earned a total of £4.58m pounds in 2018, when he served about 10 months as chief executive.
While the vacuum at the top of HSBC is filled, a host of hurdles remain. Mr Quinn’s overhaul of the sprawling lender followed two post-crisis resets with costs remaining too high, red tape too thick and not enough businesses generating adequate returns.
As Asia has boomed, the institution born the Hongkong and Shanghai Banking in 1865 has idled. Shares of HSBC have declined since the start of the last decade. In contrast, JPMorgan Chase has more than tripled.
HSBC’s key markets are suffering through serial crises - Brexit at home, the fallout of democracy protests in the former colony and coronavirus around the globe.
The lender, which generated half its revenue in Asia last year, said last month that in the most extreme scenario, in which the virus continues into the second half of 2020, it could see $600m in additional loan losses. Separately, S&P Global estimated that the outbreak will add $100 billion in credit losses to banks in the Asia-Pacific region this year.
Still, “given that Noel Quinn has been leading the restructuring of the bank his appointment removes an element of uncertainty at a time of crisis that investors will find reassuring,” said Joseph Dickerson, banks analyst at Jefferies.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
How to help
Donate towards food and a flight by transferring money to this registered charity's account.
Account name: Dar Al Ber Society
Account Number: 11 530 734
IBAN: AE 9805 000 000 000 11 530 734
Bank Name: Abu Dhabi Islamic Bank
To ensure that your contribution reaches these people, please send the copy of deposit/transfer receipt to: juhi.khan@daralber.ae
UAE currency: the story behind the money in your pockets
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
SPECS
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If you go...
Flying
There is no simple way to get to Punta Arenas from the UAE, with flights from Dubai and Abu Dhabi requiring at least two connections to reach this part of Patagonia. Flights start from about Dh6,250.
Touring
Chile Nativo offers the amended Los Dientes trek with expert guides and porters who are met in Puerto Williams on Isla Navarino. The trip starts and ends in Punta Arenas and lasts for six days in total. Prices start from Dh8,795.
Killing of Qassem Suleimani
RESULTS
5pm: Handicap (PA) Dh70,000 1,400m
Winner: AF Tathoor, Tadhg O’Shea (jockey), Ernst Oertel (trainer)
5.30pm: Handicap (TB) Dh70,000 1,000m
Winner: Dahawi, Antonio Fresu, Musabah Al Muhairi
6pm: Maiden (PA) Dh70,000 2,000m
Winner: Aiz Alawda, Fernando Jara, Ahmed Al Mehairbi
6.30pm: Handicap (PA) Dh70,000 2,000m
Winner: ES Nahawand, Fernando Jara, Mohammed Daggash
7pm: Maiden (PA) Dh70,000 1,600m
Winner: Winked, Connor Beasley, Abdallah Al Hammadi
7.30pm: Al Ain Mile Group 3 (PA) Dh350,000 1,600m
Winner: Somoud, Connor Beasley, Ahmed Al Mehairbi
8pm: Handicap (PA) Dh70,000 1,600m
Winner: Al Jazi, Fabrice Veron, Eric Lemartinel
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
UAE currency: the story behind the money in your pockets
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E4.0-litre%2C%20flat%20six-cylinder%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3Eseven-speed%20PDK%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E510hp%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E470Nm%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh634%2C200%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
Company%20profile
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The biog
Favourite films: Casablanca and Lawrence of Arabia
Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
Favourite dish: Grilled fish
Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
Day 2, Abu Dhabi Test: At a glance
Moment of the day Dinesh Chandimal has inherited a challenging job, after being made Sri Lanka’s Test captain. He responded in perfect fashion, with an easy-natured century against Pakistan. He brought up three figures with a majestic cover drive, which he just stood and admired.
Stat of the day – 33 It took 33 balls for Dilruwan Perera to get off the mark. His time on zero was eventful enough. The Sri Lankan No 7 was given out LBW twice, but managed to have both decisions overturned on review. The TV replays showed both times that he had inside edged the ball onto his pad.
The verdict In the two previous times these two sides have met in Abu Dhabi, the Tests have been drawn. The docile nature of proceedings so far makes that the likely outcome again this time, but both sides will be harbouring thoughts that they can force their way into a winning position.
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
UAE currency: the story behind the money in your pockets
Teams in the EHL
White Bears, Al Ain Theebs, Dubai Mighty Camels, Abu Dhabi Storms, Abu Dhabi Scorpions and Vipers
Voices: How A Great Singer Can Change Your Life
Nick Coleman
Jonathan Cape
