- CEO Mustier of UniCredit sheds idea of switching to HSBC.
- Noel Quinn is currently serving as the interim CEO at HSBC.
- Investors and analysts are disappointment in chairman Tucker's decision of not choosing Quinn.
- Quinn announced an overhaul including $100 billion worth of assets shed at HSBC.
CEO Jean Pierre Mustier of UniCredit was previously reported to have plans of switching to HSBC. In his announcement on Sunday, however, Mustier declared that he will no longer be quitting UniCredit to join its European rival.
Mustier was reported as a top contender for the leading position at HSBC in the past week. The speculation that he may be looking for a switch will fade away once the largest bank in Italy releases an official statement that the executive will keep his role at the financial services company.
UniCredit has chosen not to comment on the news any further at this stage.
Noel Quinn Is Currently Serving As The Interim CEO At HSBC
HSBC ousted its CEO, John Flint, last year, following which, the European bank declared that it’s hunting for a suitable candidate for the role of the new CEO. The bank had given a deadline of six to twelve months in which the new executive was to be announced. In the meantime, internal candidate Noel Quinn took over as the interim CEO of HSBC. Owing to his performance, Quinn is also currently the top favorite for the permanent CEO position at the European bank.
The sources also informed that Mustier was expected to be strong competition for Quinn in pursuit of the permanent position at HSBC. With him withdrawing, votes for Quinn are likely to boost significantly. Under Mark Tucker, the current chairman of HSBC, Quinn has already announced plans of an overhaul at the European bank.
The specifics of Quinn’s overhaul strategy included $100 billion worth of assets shed, contraction of the investment bank and restructuring the financial services company in two of its largest markets, Europe and the U.S. All in all, it will translate to a massive 35,000 jobs cut in the upcoming 3 years.
Analysts And Investors Are Disappointed In Tucker’s Decision Of Not Choosing Quinn
Quinn’s strategy was largely well-received by the investors and analysts alike who expressed disappointment in Tucker’s decision to not have offered the role to Quinn so far.
At the time of writing, UniCredit is exchanging hands at just over €13 per share in the stock market that marks almost the same level at which it started the new year. At $36.46 per share, HSBC is down almost 8% in 2020 so far.
In terms of market capitalization, HSBC is a drastically bigger bank as compared to UniCredit. HSBC is currently valued at $760.64 billion while UniCredit is worth $33.15 billion.