HSBC chief executive of retail banking and wealth management John Flint is to replace Stuart Gulliver as group chief executive.
Flint will become chief executive from 21 February 2018 once Gulliver has retired from HSBC.
HSBC chair Mark Tucker, who led the search to identify Gulliver's successor, told the market: 'John has broad and deep banking experience across regions, businesses and functions. He has a great understanding and regard for HSBC's heritage, and the passion to build the bank for the next generation.
'Through the search process, John has developed with myself and the board a clear sense of the opportunities and priorities that lie ahead.'
Flint, 49, joined HBSC in 1989. His promotion to group chief executive will see him earn a base salary of £1.2 million, a fixed pay allowance of £1.7 million per year and an annual pension allowance of £360,000 equal to 30% of his base salary.
His contract also provides for discretionary variable pay that consists of an annual incentive award up to a maximum value of 215% of base salary, and a long-term incentive award up to a maximum of 320% of base salary dependent on certain performance criteria being met.
'I am humbled by the responsibility and enormously excited by the opportunity to lead HSBC as group chief executive,' Flint said.
'The bank is very well-positioned for the future but we must continue to innovate and accelerate the pace of change required to meet the expectations of our shareholders, customers, employees and society at large.'
Gulliver, 58, joined HSBC in 1980 and was promoted to chief executive in January 2011. He will continue to advise HSBC until he formally retires from the bank on 11 October 2018.
Under his watch the bank has paid $60.7 billion in dividends and announced an additional $5.5 billion in share buybacks, while delivering a total shareholder return of 66.8%.
'It has been my great privilege to lead HSBC as group CEO for the last seven years, Gulliver said.
'My primary role as Group CEO is stewardship and to hand the company to my successor in better shape than when I started.
'After the most extensive restructuring of the bank in its history and a relentless focus on meeting the evolving expectations of society I am confident HSBC is in better shape than it was seven years ago. I know that with Mark and John leading the organisation, it is in great hands.'
Tucker added: 'Stuart has led HSBC through a challenging and difficult period with great energy and commitment and successfully reshaped the business strategy of the bank.
'I would like to thank him on behalf of the board for everything he has done for HSBC. This includes the important work of putting in place global standards for identifying and preventing financial crime.'