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HSBC appoints AIA boss Mark Tucker as new chairman | |
(about 9 hours later) | |
HSBC has appointed Mark Tucker, the chief executive of Asian insurer AIA, as group chairman. | |
Mr Tucker will take over on 1 October, succeeding Douglas Flint who has been in the role since 2010. | Mr Tucker will take over on 1 October, succeeding Douglas Flint who has been in the role since 2010. |
The appointment breaks an HSBC tradition of appointing insiders to the chairmanship. | |
One of his first jobs will be to find a replacement for Stuart Gulliver, the chief executive of HSBC, who plans to step down next year. | |
External perspective | |
While HSBC is Europe's biggest bank, the bulk of its profits are generated in Asia. | |
Mr Tucker has been chief executive of AIA for seven years, during which he oversaw the insurer's expansion in Asia. | |
Before AIA, he was the chief executive of insurance giant Prudential, and brings to HSBC his experience at the top of a UK financial giant as well as his Asian exposure. | |
Richard Dunbar of Aberdeen Asset Management, told the BBC the bank has "obviously decided" that an external perspective would be useful to HSBC at this time. | |
He added that while chief executive of Prudential, Mr Tucker did a good job of expanding its Asian assets, which are seen as the firm's "jewel in the crown". | |
HSBC has been through an overhaul in recent years in an attempt to reverse declining profits. | |
Over the past six years it has cut more than 40,000 jobs and sold off businesses. | |
Despite those efforts, profits tumbled more than 60% last year. | Despite those efforts, profits tumbled more than 60% last year. |
The banking industry has been hampered by the extended period of very low interest rates, which makes lending money less profitable. | The banking industry has been hampered by the extended period of very low interest rates, which makes lending money less profitable. |
For HSBC, that problem has been compounded by its move into less risky areas of banking since the financial crisis which started in 2007. | |
Those challenges make the appointment of a new chief executive even more crucial for investors, a search which will now be led by Mr Tucker. | Those challenges make the appointment of a new chief executive even more crucial for investors, a search which will now be led by Mr Tucker. |
Reputation revamp | Reputation revamp |
HSBC has also been attempting to repair its image after a series of scandals. | HSBC has also been attempting to repair its image after a series of scandals. |
Earlier this year it reached a $470m (£325m) settlement with the US government and states related to dubious mortgage lending and foreclosure practices during the financial crisis. | Earlier this year it reached a $470m (£325m) settlement with the US government and states related to dubious mortgage lending and foreclosure practices during the financial crisis. |
In 2015 Mr Gulliver and Mr Flint apologised for "unacceptable" practices at its Swiss private bank which helped clients to avoid tax. | In 2015 Mr Gulliver and Mr Flint apologised for "unacceptable" practices at its Swiss private bank which helped clients to avoid tax. |
In late 2012 HSBC paid US authorities $1.9bn in a settlement over money laundering. | In late 2012 HSBC paid US authorities $1.9bn in a settlement over money laundering. |
AIA said that Ng Keng Hooi, would take over as chief executive from 1 September. |