HSBC to expedite restructuring plan to reduce costs

HSBC said Tuesday it would speed up its restructuring plan, which would cut costs much more than previously proposed.


HSBC to expedite restructuring plan to reduce costs

The bank made the announcement after it posted a 1.31bn (£ 2.3bn) pre-tax quarterly profit - down 35% from the same period last year.


The bank's revenue also fell 11 percent to 11.9 billion from 3.2 billion in Asia.


HSBC has not yet said if its restructuring plan means more jobs.


The bank says it will provide a detailed plan with its full-year results in February next year.


HSBC had earlier announced plans to cut 35,000 jobs in February, but has stalled amid the epidemic.


But after a 65 percent drop in pre-tax profits in the first half of the year, the bank said in August it would step up the plan.


He said the quarter's earnings were down mainly due to the effects of lower interest rates and a lower share in the profits of its Saudi subsidiary.


'Results still promise'

The group's chief executive, however, said there were some bright spots.


"These were the results against the backdrop of the continued impact of Covid-19 on the global economy. Moving forward, "the interest rate environment," said Noel Quinn, the group's chief executive, in a statement.


HSBC had set aside between $ 8 billion and $13 billion for bad debts as it expects more people and business payments to be repaid due to the epidemic of Covid 19.


In September, HSBC's share price plunged to its lowest level since 1995, amid allegations that the bank was able to transfer millions of dollars worldwide to fraudsters despite being aware of the scam. Allowed.


The bank has also come under recent criticism from US Secretary of State Mike Pompeo for backing China's controversial security legislation in Hong Kong.


Even before the Code-19 epidemic, HSBC was restructuring with a plan to cut costs by 4.5bn (£ 3.6bn) by 2022.


At its peak, the bank employed more than 300,000 people, but since the global financial crisis, the bank has significantly improved its operations.


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