HSBC have had an unbelievable year so far with 6 month profits up by 3 percent to $7,000,000,000. However, they are cutting around 30,000 jobs globally.
Thankfully the UK is unlikely to get hit with the job cuts, it is thought that only around 700 jobs will go in the UK and many of these will be through natural reduction, e.g. retirement.
HSBC are making massive global cost cutting measures. Much of their strength still lies in Asia and they are likely to be streamlining services in this region.
HSBC’s dominance in Asia has provided it with a very large cushion to fall on in these tough economic times. Several of the banks that have weathered the storm well have a lot of influence in emerging markets and non-UK and American markets. Generally banks with the least exposure to the sub prime mortgage business seem to have done OK.
With profits of £7 billion (which is around US$11.1 billion) it is almost shocking to think that they feel it is still necessary to cut jobs. However, these huge profits and further cost reduction measures do mean that it is all good news for shareholders.
HSBC Share Price Shoots Up
On the back of this news investors are starting the week on a banking spending spree. At 11am share price is already up by 4.5% to 621.6p.
HSBC Sells Off Branches and Leaves Poland
As part of its global cost cutting programme HSBC is selling off 195 of its Upstate New York retail branches. They have agreed a deal with First Niagara Bank.
HSBC are also leaving retail banking in Poland with a closure of wealth management and retail banks. Stuart Gulliver, HSBC’s CEO has said that there will be other similar closures as HSBC withdraws from poorly performing economies to focus on their successes.