HSBC has appointed its Chief Financial Officer Georges Elhedery as its next CEO, the bank said Wednesday. Lebanon-born Elhedery, 50, who becomes the bank’s third chief executive in less than eight years, will replace outgoing head Noel Quinn from September 2. While the 160-year-old lender did consider external candidates, it has traditionally appointed its CEO from within. “For most investors, continuity is essential, especially after the battles HSBC’s board has been through in recent years, to persuade shareholders that its strategy is right,” said Matt Britzman, equity analyst at Hargreaves Lansdown. Elhedery’s appointment comes as HSBC (HSBC) tries to shift from restructuring to growth, at a time when helpful interest rate hikes may have peaked and geopolitical tensions simmer. Iain Pyle, senior investment director at HSBC shareholder abrdn, said Elhedery had made a good impression on the market over his 18 months as finance chief and was “a clear communicator.” “It’s a continuity appointment, but a strong candidate and I think will be taken well today,” he said. HSBC defeated a shareholder resolution last year backed by Chinese insurance giant Ping An and other Hong Kong-based shareholders who were seeking a spin-off of its lucrative Asia business. Ping An, which owns 8.9% of HSBC according to LSEG data, declined to comment on Elhedery’s appointment. Elhedery began his career in banking as a trader before joining HSBC in 2005. One of HSBC's many branches in Hong Kong pictured on February 19, 2024 Lam Yik/Bloomberg/Getty Images Related article China’s economic troubles are hurting global banks In October 2022, he was unexpectedly appointed CFO just weeks after returning from a sabbatical. It was a move that groomed him for the top job. Quinn, who led HSBC for five years, will remain CEO until Elhedery starts in the role. At the time of his surprise exit announcement in April, he said he wanted a better work-life balance and planned to pursue a portfolio career. Quinn oversaw a raft of asset sales, navigated the pandemic and a push by rebel investors to break up the bank, guiding the lender to record profit. Stanley Tsai, founder of Hong Kong-based investment advisory firm Antler Capital, said he wasn’t surprised by the choice. “Some investors might’ve wanted someone with more direct Asia experience, especially with the Greater China portfolio, but it’s always been the non-Asia business that has presented the most overwhelming challenges,” he said. That said, HSBC is highly sensitive to souring relations between China and the West, and delivering on growth ambitions in Asia will be challenging at a time when China’s economic growth is slowing and the bank risks being embroiled in geopolitical tensions. Elhedery will also have to manage HSBC’s exposure to China’s lingering bad loans crisis, which triggered a shock $3 billion charge last February on the bank’s stake in China’s Bank of Communications. He has relatively little direct work experience in Asia, having spent the bulk of his HSBC career in roles across its Middle East and Africa businesses. HSBC said it will announce Elhedery’s successor as Group CFO in due course.