HONG KONG - HSBC said on Tuesday its Chief Executive Noel Quinn will retire - a surprise departure by its hard-nosed leader of five years who has overseen a sweeping series of asset sales across the globe.

The bank said it has launched a formal process to find a successor.

Chief Financial Officer Georges Elhedery, appointed to the No 2 role last January after a sabbatical before which he headed the bank's markets business, is likely the leading internal candidate for the job

Quinn will remain CEO until his successor starts in the role, and he has agreed to remain available through to the end of his 12-month notice period expiring on April 30, 2025, to support the transition, the bank said in a statement.

Chief Financial Officer Georges Elhedery, appointed to the No 2 role last January after a sabbatical before which he headed the bank's markets business, is likely the leading internal candidate for the job.

"After an intense five years, it is now the right time for me to get a better balance between my personal and business life. I intend to pursue a portfolio career going forward," Quinn said.

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Quinn, who joined HSBC in 1987, was named the chief executive of the bank, which makes most of its revenues and profits in Asia, in March 2020, after serving as an interim CEO following the surprise ouster of his predecessor.

He played a crucial role in navigating challenges during and after the coronavirus pandemic.

One of the main tasks for Quinn after he took over was to improve returns for shareholders, and he sought to do that by shrinking the bank's footprint in non-profitable markets and unveiling job cuts while doubling down on an Asia pivot strategy.

The bank's shares have gained roughly 30 percent during his tenure.

HSBC reported pretax profit that came in at $12.7 billion for the quarter ended March versus $12.9 billion a year earlier, as it struggles to cope with rising costs from expansion in Asia and amid inflationary pressures.

The results were better than the $12.6 billion average of analysts' forecasts compiled by HSBC.

The London-headquartered bank also announced $3 billion worth of share buybacks on top of $2 billion in share purchases announced in February.