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Earnings at HSBC's North American operation fell 12% in the first quarter. Details about the unit's future restructuring are due next month, but executives offered reassurances Tuesday that they don't plan to divest it.
May 5 -
HSBC Holdings executives said little about the future of their U.S. bank and other underperforming businesses at a sometimes contentious annual shareholder meeting Friday.
April 24 -
More than two years after agreeing to pay a massive sum to settle charges oflaundering billions of dollars for drug gangs and terrorists, HSBC still has not properly reformed its internal controls, the settlement monitor reported. The bank also plans to remove a key U.S. executive after he tried to interfere with internal auditors.
April 1 -
A disappointing 2014 for HSBC has CEO Stuart Gulliver considering "extreme" changes at its U.S. bank and other struggling units, which he said are a drag on return on equity.
February 23
HSBC, Europe's largest bank, will announce a plan next week to cut thousands of jobs,
Chief Executive Officer Stuart Gulliver will disclose a target when he updates shareholders on the bank's strategy on June 9, laying out a reduction that will probably affect 10,000 to 20,000 people, according to Sky. The number is still being worked out, it cited one person as saying.
Heidi Ashley, a spokeswoman for HSBC in London, declined to comment on the report. The company employed almost 258,000 people at the end of last year.
Gulliver, 56, is striving to reduce costs and sell businesses to bolster earnings, while spending billions of dollars to boost internal compliance. The job-cutting target will exclude the potential impact of selling businesses in Brazil and Turkey, as well as the possible separation of HSBC's U.K. arm to meet a requirement to separate the consumer and investment banking businesses, Sky said.
The bank also is threatening to leave the U.K. over tax increases and the introduction of some of the toughest regulations in the world. Last year the British levy imposed on the firm's global balance sheets cost HSBC 750 million pounds ($1.1 billion), the most among U.K. lenders.
It's vital HSBC set a clear target for reducing expenses so that it can improve returns to shareholders, who've seen insufficient evidence of progress, James Chappell, an analyst at Berenberg Bank, wrote in a note to clients last month. Revenue growth is unlikely in a low interest rate environment where companies have taken on too much debt, he said.