HSBC Holdings appointed Brendan Nelson as its new chairman, succeeding Mark Tucker, marking a shift back to the tradition of selecting the board head from its own members.

The appointment follows a day after HSBC CEO Georges Elhedery informed the FT's Global banking summit in London that Nelson was not pursuing the position permanently.

Elhedery mentioned that Nelson was not ready to dedicate himself to the position for six to nine years at this point in his career.

Nelson has acted as interim chair since October 1 and became a member of the lender's board in September 2023. He previously led global banking at KPMG and possesses knowledge in UK and international finance and auditing.

"Since taking on the position of interim group chair, Brendan has shown his outstanding leadership skills supported by his solid banking and governance experience," stated Ann Godbehere, the senior independent director who oversaw the replacement process.

"I am eager to keep collaborating with the board, Georges, and the broader management team as we achieve our strategic and financial goals," Nelson expressed in a statement.

Nelson will continue as the chair of HSBC's group audit committee until the bank's results for 2025 are announced in February 2026. HSBC indicated that he would subsequently be succeeded in that position.

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Tucker, HSBC's inaugural external chairman who revealed his intention to resign in May after eight years with the bank, rejoined Hong Kong-based insurer AIA Group as chairman on October 1. He served as AIA's chief executive and president from 2010 to 2017.

During Tucker's leadership at HSBC, the bank maneuvered through external challenges, such as the COVID-19 pandemic, along with a proposal from its largest shareholder at the time, Ping An Insurance (Group) Co of China, to separate its Asian operations to enhance returns.

 

Nelson will guide the continued implementation of a refined strategy under Elhedery after a major restructuring he conducted in October last year, aimed at reducing Western operations and enhancing the bank's focus on Asia, following the institution's record annual profit of $32.3 billion in 2024.

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Nelson will be responsible for overseeing Elhedery’s initiatives to increase fee-based revenue to compensate for declining interest income as central banks reduce policy rates.

Additionally, geopolitical uncertainties will continue to pose a challenge for Nelson’s team as HSBC seeks to expand its operations in China amidst rising trade tensions with the United States and other key economies.

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The bank indicated in its mid-year earnings report that U.S. President Donald Trump's trade tariffs might result in missing its profitability goal of a mid-teens return on tangible equity in the coming years.