|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
15th of May 2011
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  
May 11, 2011    

HSBC unveils cost-cutting measures

Bookmark and Share

by Kay Murchie
’HSBC

HSBC has today revealed it will embark on a massive cost-cutting exercise, just two days after it unveiled its first quarter results.

The bank, which is Europe’s largest, is looking to save up to $3.5 billion (£2 billion) by streamlining its IT operations and cutting back on its wealth management and retail divisions.

However, the number of job losses was not disclosed.

In a statement, chief executive Stuart Gulliver, said: “We have launched a programme to target US$2.5-3.5bn of cost saves to reach our cost efficiency ratio target of 48-52 percent.

“This is not about shrinking the business but about creating capacity to re-invest in growth markets and to provide a buffer against regulatory and inflationary headwinds,” he added.

On Monday, the bank said net profits grew 58% to $4.153 billion in the three months to 31 March on lower taxes and bad debt charges.

However, the bank said the group’s pre-tax gains were driven down by rises in other exceptional costs – such as the £269 million it has set aside in compensation for customers who were mis-sold the controversial payment protection insurance (PPI).

HSBC, which operates in 87 markets and has a workforce of more than 287,000, is one of the few banks not to ask for help during the financial crisis.

Discuss this in the Finance Markets forums

Story link: HSBC unveils cost-cutting measures



Financial Services:





Related financial stories to: HSBC unveils cost-cutting measures:
Previous: «
Next: »

Visited 484 times, 12 so far today

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment

Tags: cost-cutting, , , IT operations, , ,

 

Banking News feed Banking News

All Financial News feed All Financial News