HSBC Wealth Chief Leaves As New CEO Elhedery Shakes Up Team

HSBC's Wealth and Personal Banking chief, Nuno Matos, is leaving the Asia-focused bank, marking one of several significant leadership changes as Georges Elhedery prepares to assume the role of CEO, Sinead Cruise and Lawrence White reported for Reuters.

Matos was among the internal candidates vying for the CEO position but lost out to chief financial officer Elhedery last month. I Photo: HSBC Group 

Barry O'Byrne, currently heading the lender's commercial banking business, will replace Matos, the company announced on Thursday. Matos was among the internal candidates vying for the CEO position but lost out to chief financial officer Elhedery last month, sources told Reuters at the time.

While wealth and commercial banking each accounted for about 38% of the bank's pretax profit in the first half, the wealth business that O'Byrne takes over is central to HSBC's strategy to grow fee-based income.

HSBC's other source of revenue, from lending, is expected to decline alongside cuts to global interest rates.

By choosing an internal successor, Elhedery aims to maintain continuity of strategy rather than initiate a major overhaul of the wealth business.

“I suspect that Georges will want HSBC to look like a swan over the next five years—stability at the top, but lots of activity under the water,” Ben Toms, an analyst at RBC Capital Markets, told Reuters. 

"Unfortunately, stability at the top probably means a lack of short-term opportunities for ambitious, high-quality management who are one rung down. This morning's news is likely a reflection of this construct."