HSBC Holdings named Brendan Nelson as its new chairman on Wednesday, replacing Mark Tucker, in a return to the pattern of appointing the head of its board from among its ranks.
The appointment was made one day after HSBC CEO Georges Elhedery informed the FT's global banking conference in London that Nelson was not looking for a permanent position.
Elhedery claimed Nelson did not want to commit to the job for six to nine years at the current stage of his career. Nelson has been serving as interim chair since October 1 and joined the lender's board in September 2023. He was the former head of global banking at KPMG and has expertise in UK and worldwide financial and auditing.
"Since assuming the role of interim group chair, Brendan has demonstrated his excellent leadership capabilities backed by his strong banking and governance credentials," said Ann Godbehere, the senior independent director who headed the succession process.
"I look forward to continuing to work with the board, Georges and the wider management team as we deliver on our strategic and financial objectives," Nelson said in a press release.
Nelson will continue to lead HSBC's group audit committee until February 2026, when the bank releases its 2025 financial reports. HSBC stated he would then be replaced in that post.
On October 1, Tucker, the first-ever external chairman of HSBC, rejoined Hong Kong-based insurer AIA Group as chairman after announcing in May that he would be leaving the bank after eight years. From 2010 till 2017, he served as president and chief executive of AIA.
The COVID-19 epidemic and an attempt by Ping An Insurance (Group) Co. of China, the lender's largest shareholder at the time, to sell off its Asian division in order to increase profits were among the external problems that Tucker oversaw at HSBC.
Nelson will oversee the further pursuit of a streamlined strategy under Elhedery following a significant reorganization he undertook in October last year to scale back Western operations and increase the lender's emphasis on Asia, after reaching the bank's highest annual profit of $32.3 billion in 2024.
Nelson will also be in charge of overseeing Elhedery's attempts to increase fee-based revenue in order to compensate for declining interest income as policy rates are lowered by central banks.
Moreover, geopolitical uncertainties will remain a problem for Nelson's team as HSBC strives to build its business in China at a time of rising trade tensions with the United States and other major nations.
The impact of U.S. President Donald Trump's trade tariffs may prevent the bank from meeting its profitability goal of a mid-teens return on tangible equity in subsequent years, the bank stated during its half-year earnings.
