Banking giant HSBC will cut 35,000 jobs over the next three years and shed assets in a major overhaul.
Some $100bn (£77bn) in assets will be cast off and the bank’s investment branch slashed as it seeks to become leaner and more competitive.
Interim chief executive Noel Quinn said: “The totality of this program is that our headcount is likely to go from 235,000 to closer to 200,000 over the next three years.”
Image: Noel Quinn has run HSBC since the summer of 2019
HSBC reported its 2019 profit before tax had dropped to $13.35bn (£10.2bn), down from $19.89bn (£15.3bn) the previous year. Brokerage estimates had been for around $20bn (£15.4bn).
The bank blamed $7.3bn (£5.6bn) in write-offs linked to its global banking and markets and commercial banking business units in Europe.
HSBC is Europe’s largest bank by assets but makes around half of its revenue and 90% of its profit in Asia.
In recent times, it has faced a number of challenges: slowing growth in its main markets, the coronavirus, and the UK’s withdrawal from the European Union.
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In its results, the bank said the coronavirus, which has infected more than 70,000 people around the world – most of them in China – had significantly affected its staff and customers.
Mr Quinn said: “Longer term, it is also possible that we may see revenue reductions from lower lending and transaction volumes, and further credit losses stemming from disruption to customer supply chains.”
Regarding Brexit, HSBC’s group chairman Mark Tucker added: “Now that the UK has officially left the EU, negotiations can begin on their future relationship.
“This has provided some certainty, but no trade negotiation is ever straightforward. It is essential that the eventual agreement protects and fosters the many benefits that financial services provide to both the UK and the EU.
“At the same time as remaining close to Europe, the UK must also strengthen its links with other key partners, including the US, China and south-east Asia. We look forward to working with governments to help achieve this.”
Source : Sky News