Monday, August 22

Huge plans 25,000 cut more jobs banking

LONDON - HSBC will compete in the 30 000 jobs axe, as it lowers costs and drawbacks from countries such as Russia, Poland and the United States, where it has to fight, the half-year profit said Europe's biggest bank after reporting a rise in surprise.

HSBC which rose shares up to 5 percent first half-year pre-tax profits of $11.5 billion by 3 percent on a year ago were opposed to the average $10.9 billion in a Reuters poll.


The London-based Bank said it had 5000 jobs after restructuring costs in the operations in the United States, Britain, France, Latin America, the Middle East and it would reduce a further 25,000 until end of 2013.


This corresponds to 10 percent of the 296,000 HSBC staff. 110,000 Employees in Europe and North America, the Bank will bear the brunt of the job cuts take.


"It is a large number, but it makes sense, because HSBC the costs are quite high," said Daniel Tabbush, analyst at CLSA in Bangkok, the headcount reduction. "I hope that help achieve these cuts the Bank reduce cost to-income ratio."


Despite strong profits for the Bank, UK's unite beat Union "brutal restructuring".


New CEO Stuart Gulliver will slash annual costs of up to 3.5 billion USD, sell assets and retreat from countries where HSBC sub-scale. New to revive, aim, sharpen its focus on Asia, is a strategy that has criticized for "Plants flags" around the world.


But he said half-year results showed that the rise of a slog than tougher rules bite on all banks will be hard.


"We are not here celebrating at all." This is a long journey, that this is and how difficult it will be us, what. This unfortunately is one of the reasons, why we need to make this job cuts, "said Gulliver reporters with a call to Hong Kong"


Costs rose by 13 percent in the first half of a year before as the number of employees increased and wages rose in Asia, where banks struggle to hire and retain employees. Costs as a part of the turnover were 57.5 percent. Gulliver among 52 percent would like to receive them.


HSBC said the job cuts through natural fluctuation, many would come when its turnover is 10-15 percent per year. It also expected to add 3,000 to 5,000 jobs a year in emerging markets, and added it jobs in Asia, Brazil and Mexico in the first half.


HSBC said on Sunday that it would sell 195 U.S. branches to first Niagara Financial for approximately $1 billion in bar, and close another 13 470 sites, it had.


HSBC intends also, its U.S. portfolio, which has more than $30 billion in assets, to sell a movement is credit card, would share the capital. Capital one financial Corp. and Wells Fargo belong, have said to the bidders. A free could be Barclays.


"We have a number of people in this business interests." If we can get the price, we are looking for, we have a number of options-can we run it, sell it in pieces, we could decide to keep the retail private label cards "Gulliver told reporters."


The geographical spread of the HSBC retail banking retreat are less radical than outlined three months ago.


The Bank wants now to close or sell retail in another 20 countries. In may it had earmarked from 39 countries but has closed only in Russia and Poland.


HSBC is the first UK's big banks to report this week. Competitors are also jobs and shake up business models hard and stricter rules are hurting as the euro-zone debt crisis fixed income trading revenues has taken are.


HSBC the return on equity improved to 12.3 percent in the first half until Gulliver aims of 9.5 percent in 2010 and in the range of 12 to 15 percent. But he said that the first half level would have equated III rules with approximately 10.5 percent under new Basel.


The Bank warned increased regulation could hamper a global economic recovery, already losing momentum, as governments struggle with sovereign debt crises and try to close holes in their budgets.


Potentially radical changes for UK banks, due out that next month could force a distinction between of the domestic retail banking business more job cuts might cause, HSBC warned. But it did not expect to force to move its headquarters from London to HSBC.


HSBC have been strong gains driven by higher than expected sales and a big improvement in bad debt, the 30 percent over the previous year to $5.3 billion, which was lowest half of the year for five years.


This improvement was a 131 percent increase in profits for retail banking and wealth management and supports an increase of 31 percent gain on credit is.


At its investment bank arm, global banking and markets, an earnings fell 12 percent over the previous year. HSBC was hit as rivals by a fall in prices and credit income, especially in Europe.


"they are more or less reassuring figures, but they're still points to concerns about the global economy," said Colin McLean, Managing Director of the SVM asset management, owns the HSBC shares.


Gulliver said that revenues grew strongly in the markets, it is on, but will show subdued growth in Europe and in the United States, where the consumer finance arm is running down.


"We're pretty sure China will manage a soft landing and we are confident, especially in pockets of the real estate market is overheating, which here skillfully in Hong Kong, are treated by the authorities," he said.


Copyright 2011 Thomson Reuters.

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