The banking giant HSBC will cut 35,000 jobs over the next three years and reduce operations in a major overhaul.
Around 100 billion dollars (77 billion pounds) of assets will be eliminated and the bank’s investment branch will be reduced as it tries to become leaner and more competitive.
Interim CEO Noel Quinn said, “The whole of this program is that our staff will likely go from 235,000 to nearly 200,000 in the next three years.”
Mark Kleinman, editor of Sky News City, said it would be the third major restructuring of HSBC in 10 years and that investment banking activities in the United States and Europe “running out of funds” will bear the brunt of this selection of posts. of work “.
He added: “This plan to cut tens of thousands of jobs is a model we have seen across the banking sector since the 2008 financial crisis because ultra-low interest rates over the past decade have depressed the returns and performance of big international banks like HSBC. “
HSBC said 2019 pre-tax profit was $ 13.35 billion (£ 10.2 billion), down from $ 19.89 billion (£ 15.3 billion) the previous year – a drop of 33%. Analysts had expected around $ 20 billion (£ 15.4 billion).
The bank blamed $ 7.3 billion (£ 5.6 billion) for cancellations linked to its global banks and markets and its banking business units in Europe.
HSBC is the largest European bank by activity, but generates about half of its revenue and 90% of profits in Asia.
In recent times it has faced a series of challenges: slowing growth in its main markets, coronaviruses, anti-government protests in Hong Kong and the withdrawal of the United Kingdom from the European Union.
In its findings, the bank said that coronavirus, which has infected over 70,000 people worldwide, most of them in China, has had a significant impact on its staff and customers.
Quinn said: “In the longer term, it is also possible that there will be reductions in revenue due to lower volumes of loans and transactions and further credit losses resulting from the disruption of customer supply chains.”
As for Brexit, HSBC group president Mark Tucker added: “Now that the UK has officially left the EU, negotiations can begin on their future relations.
“This has provided some certainty, but no trade negotiations have ever been simple. It is essential that the eventual agreement protects and promotes the many benefits that financial services offer to both the UK and the EU.
“At the same time, remaining close to Europe, the United Kingdom must also strengthen its ties with other key partners, including the United States, China and Southeast Asia. We are looking forward to working with governments to achieve this. target”.
Tucker said he expected growth to stabilize in 2020 but “at a slightly slower pace than in recent years,” adding: “This underscores the need to make the most of future opportunities.”