HSBC shares up in Hong Kong after job cuts announced

2nd August 2011, Comments 0 comments

Shares in HSBC opened higher in Hong Kong Tuesday after the banking giant announced plans to slash 30,000 jobs worldwide by 2013 and unveiled bumper profits in the first half.

The heavyweight rose 0.46 percent to HK$77.3 ($9.92) as the broader Hang Seng Index opened 0.34 percent lower on Tuesday.

The British lender said Monday it would axe 30,000 jobs over the next two years, representing about 10 percent of its global workforce, as it looks to slash costs.

The latest plan came after the banking giant -- which survived the 2008 crisis without state aid, unlike many of its rivals -- announced in a strategic review earlier this year plans to save $2.5-3.5 billion in costs by 2013.

It is the latest global banking giant to announce a heavy round of job cuts, after Italy's Intesa Sanpaolo and Switzerland's Credit Suisse, which are shedding thousands of positions.

The bank said on Monday that its net profit soared to $8.9 billion (6.2 billion euros) in the first half on lower bad debt and tax charges.

Pre-tax profits rose 3.3 percent to $370 million compared with the first six months of 2010, while total revenues edged ahead to $35.7 billion.

The bank also unveiled plans on Sunday to sell 195 retail branches, primarily in upstate New York, to First Niagara Bank for an estimated $1 billion.

HSBC was founded in Hong Kong and Shanghai in 1865 and the bank regards Asia as its most important region.

© 2011 AFP

0 Comments To This Article