HSBC to outline 10,000 job losses

Aug 1 2011

HSBC is expected to start the banking results season on a gloomy note as it outlines 10,000 job losses.

The banking giant is expected to unveil the cost-cutting plans alongside a set of disappointing figures for the six months to June 30 2011.

An HSBC spokesman said the group was declining to comment on speculation over job cuts - but it is understood some 10,000 will go under new restructuring plans.

HSBC kicks off the results season, which is expected to provide a snapshot of a gruelling start to 2011. Barclays, Lloyds Banking Group and Royal Bank of Scotland are all also expected to reveal a drop in profits in their interim updates over the coming week.

HSBC is anticipated to report pre-tax profits of 10.9 billion US dollars (£6.7 billion) for the period, down from 11.1 billion US dollars (£7 billion).

The main focus is likely to be on progress with cost-cutting after boss Stuart Gulliver unveiled a multi-billion dollar savings programme earlier this year.

The payment protection insurance mis-selling scandal; planned ringfencing of retail banking operations as proposed by the Independent Commission on Banking; and a volatile global economic climate have all affected the accounts of the four lenders.

Taxpayer-backed Lloyds and RBS have seen their shares plunge 30% and 17% respectively in the last six months alone, while Barclays' shares have plummeted 26% and HSBC has lost 14%. Meanwhile, Barclays, which reports on Tuesday, is expected to reveal a 24% drop in reported profits to £1.8 billion, according to broker Seymour Pierce.

Taxpayer-backed Lloyds Banking Group is expected to report pre-tax profits of £1 billion on Thursday, a steep reduction on the £1.6 billion reported a year earlier.

Royal Bank of Scotland closes the week with its results on Friday, which are expected to reveal £611 million in reported profits, down 19% on the previous year, Seymour Pierce said.