HSBC has appointed Georges Elhedery as its new chief executive, tasking him with navigating the bank through growing tensions between the West and China.

Elhedery, who has served as chief financial officer since early 2023, will take over from Noel Quinn on September 2. Quinn’s unexpected announcement in April of his decision to step down, after nearly five years in the role, positioned Elhedery as the leading candidate to succeed him.

Elhedery’s promotion marks a significant milestone in his career, having joined HSBC in 2005. His new role places him at the helm of a globally significant institution entangled in geopolitical tensions between China and the West.

At 50, Elhedery assumes leadership as the financial benefits from higher interest rates for HSBC begin to wane. Announcing the appointment, HSBC chair Sir Mark Tucker praised Elhedery as an exceptional leader and banker with a deep commitment to the bank, its customers, and its employees. Tucker highlighted Elhedery’s track record of managing change, driving growth, simplifying operations, controlling costs, and focusing on execution.

During Quinn’s tenure, HSBC streamlined its global operations to concentrate more on Asia, the source of its largest profits. He also led an extensive restructuring of the bank, which included cutting 35,000 jobs and pledging to reduce annual costs by $4.5 billion.

“I am deeply honoured by the trust placed in me to lead this great institution into the future,” Elhedery said in a statement.

HSBC stated that the appointment was the result of an “orderly and robust” succession process.

The increase in interest rates over the past two years has boosted the bank’s shares to nearly their highest level in six years. Despite this, its pre-tax profits in the first quarter fell by 2 percent to $12.7 billion compared to the same period last year.

Tucker expressed gratitude to Quinn, who took on the role in 2019 initially on an interim basis after the sudden departure of his predecessor John Flint after only 18 months, “for his loyal commitment to the group over 37 years.”