HSBC chief expected to step down

Mr Geoghegan is expected to be replaced by Stuart Gulliver, who is head of the group's investment banking operation, while Douglas Flint, the bank's finance director, is set to take over as chairman from Stephen Green, who recently quit to become Minister of Trade and Investment in the coalition Government.

The appointments are being seen as a done deal, although they still require the approval of the Financial Services Authority and may not be announced officially until after a board meeting next week.

An HSBC spokesman refused to comment on the reports, saying: "No decision has been made."

Rumours have been swirling over the chairmanship at HSBC since Mr Green announced his departure a fortnight ago.

Earlier this week, HSBC dismissed speculation that Hong Kong-based Mr Geoghegan had threatened to resign unless he was promoted to chairman as "nonsense" and "offensive".

Mr Geoghegan, who joined HSBC in 1973, had been seen as one of the favourites for the role, particularly as HSBC has a history of promoting its chief executive to the chairmanship.

The succession saga comes amid a flurry of changes at the top of Britain's major banks.

Lloyds Banking Group announced on Monday that chief executive Eric Daniels planned to retire in a year's time, while Barclays recently revealed that John Varley is stepping down to be replaced by its investment banking boss Bob Diamond.