Former KPMG partner takes helm as bank balances Asian growth and UK oversight
HSBC has announced the appointment of Brendan Nelson (pictured top) as its new group chair, bringing to an end a protracted search for a successor to Mark Tucker at one of the UK’s largest listed banks.
Nelson, 76, has been serving as interim chair since October and joined the HSBC board in September 2023. A chartered accountant by background, he spent most of his career at KPMG and has previously sat on the boards of BP and Royal Bank of Scotland/NatWest.
The appointment follows Tucker’s decision to step down a year earlier than originally planned. Tucker, who became HSBC’s first external chair in 2017, left the bank in September to become chair of AIA, the Hong Kong-based insurer he once led as chief executive.
HSBC said Nelson had been appointed following “a robust process that considered both internal and external candidates”.
The process included approaches to a range of high‑profile external figures, including former chancellor George Osborne and Kevin Sneader, Goldman Sachs’s Asia-Pacific president. The board ultimately chose an internal candidate after being unable to unite around an outside appointment.
Ann Godbehere, HSBC’s senior independent director, led the search. “Since assuming the role of interim group chair, Brendan has demonstrated his excellent leadership capabilities backed by his strong banking and governance credentials,” she said.
Nelson will also remain chair of HSBC’s group audit committee until after the publication of the bank’s 2025 results, expected in February 2026.
The choice of chair comes at a sensitive time for the lender. Although headquartered and listed in London, HSBC generates a large share of its profits in Hong Kong and mainland China, leaving it exposed to shifts in the relationship between Beijing, Washington and the UK. The bank has previously faced political scrutiny over its responses to developments in Hong Kong.
In 2022, Ping An, the Chinese insurer that is HSBC’s largest shareholder, mounted a public campaign for the group to consider a breakup, arguing for an Asia-focused entity to be separated from the western businesses. Shareholders rejected a formal split last year, but the episode underlined tensions over the group’s structure and regional balance.
Under chief executive Georges Elhedery (pictured right), HSBC has been simplifying its operations and exiting a series of smaller retail franchises in markets such as Bahrain, Malta and Sri Lanka. The bank has also signalled a renewed push in Asia, including an offer of about HK$106 billion to buy out minority investors in Hang Seng Bank, its Hong Kong affiliate.
At the same time, HSBC is part-way through a cost-reduction plan aimed at cutting around US$1.5 billion from expenses by the end of next year. Management is seeking to reshape the group while maintaining capital strength and meeting regulatory expectations in several jurisdictions.
Nelson’s appointment follows comments from Elhedery earlier this week, when he told a conference audience that the interim chair did not wish to commit to a full term of six to nine years. The expectation is that Nelson will lead the board while a longer-term successor is identified rather than remain in post for a full tenure.
His age and primarily UK-focused career mean he does not fit the profile some investors had expected for the role, particularly given HSBC’s concentration in Asia and the political scrutiny attached to its operations there. However, his experience on complex bank and energy company boards, together with his audit background, was seen as valuable in overseeing a group of HSBC’s size and regulatory footprint.
Nelson’s task will include maintaining board stability after an unusually visible succession process and supporting management as they balance cost-cutting, capital deployment and growth plans in core Asian markets.
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