Boss of HSBC’s UK bank steps down after less than two years

Mr Garner, who was expected to leave HSBC early in 2013, joined the bank in 2004 and has been responsible for its retail and commercial banking business in Britain since December 2010.

Mr Garner said in an internal note to staff yesterday he “had no desire” to join a competitor, an HSBC spokesman said.

His exit comes at a time of big upheaval for the UK financial services industry, as the Government presses ahead with reforms to split retail and investment banking operations and with banks’ culture and pay practices coming under closer scrutiny. Mr Simoes, who joined HSBC in 2007 from consultancy McKinsey & Co and had a spell with the bank in Hong Kong, will take on Mr Garner’s roles and keep his European post.

He had been running retail banking and wealth management in Europe since the start of this year, and is also a director of HSBC Bank.

Mr Garner also sits on the Financial Services Practitioner Panel, an industry group charged with challenging and working with industry watchdog the Financial Services Authority.

Along with other big banks, HSBC has also been caught up in scandals around the mis-selling of payment protection insurance and interest rate swaps.

Standard & Poor’s lowered its outlook on HSBC to negative from stable last month, saying that money-laundering allegations against the bank have left HSBC vulnerable to losing business and facing costs related to regulatory fines and litigation.

S&P also reaffirmed HSBC’s long-term counterparty credit rating of A+, which is six notches within the investment grade category.

HSBC has 4,000 staff and 119 branches in Yorkshire.