Updated from 5:15 a.m. EDT
NEW YORK (
, Europe's largest bank, said Monday it has cut 5,000 jobs and has plans to cut 25,000 more as it targets $2.5 billion to $3.5 billion of savings by 2013.
The cuts so far this year have been made in Latin America, the U.S., the U.K., France and the Middle East, HSBC said in a statement Monday.
"There will be further job cuts," CEO Stuart Gulliver told reporters on a conference call. "There will be something like 25,000 roles eliminated between now and the end of 2013." The 30,000 job cuts would amount to about 10% of the bank's global work force.
HSBC said it planned to sell 195 retail bank branches
, most located in upstate New York,
to First Niagara Bank
in a deal worth about $1 billion. The sale is part of the bank's strategy to shift its focus to commercial and corporate banking and away from retail banking across the globe.
The announcement of job cuts comes as HSBC reported that first-half pretax profit rose 3% to $11.5 billion, above analysts' estimates. Profit attributable to ordinary shareholders rose 35% to $8.9 billion, the bank said.
-- Written by Joseph Woelfel
>To contact the writer of this article, click here:
>To submit a news tip, send an email to:
. British banking company HSBC has reported a rise in profits and says it will sell just under half its retail banking branches in the United States to First Niagara Bank for around $1 billion. The bank reported pre-tax profits of $11.5 billion in the six months to June 30 2011, up 3 percent from the same period last year. Earnings per share rose to 51 cents from 38 cents a year earlier.
Second, we are targeting US$2.5-3.5bn of sustainable cost savings by 2013. Since the start of 2011, we have begun operational restructurings in Latin America, the US, the UK, France and the Middle East which will reduce headcount by around 5,000. We launched a programme to reduce the costs of our head office and global support functions. We also initiated more efficient business operating models for Commercial Banking and Retail Banking and Wealth Management. LONDON (MarketWatch) -- Banking giant HSBC Holdings PLC UK:HSBA +3.53% HBC -0.67% said Monday that its first-half net profit attributable to ordinary shareholders rose 35% to $8.9 billion as net interest income rose 2.4% to $20.24 billion and loan impairments dropped 30% to $5.27 billion. Including dividends and coupons payable on other equity, profit attributable to all shareholders rose 36% to $9.22 billion. The result was boosted by a lower tax expense, while pretax profit edged up 3.3% to $11.47 billion. Analysts had, on average, expected a pretax profit of around $10.8 billion. Shares in the group extended their early gains to trade yup 3.3% after the results. LONDON (MarketWatch) -- HSBC Holdings PLC UK:HSBA +3.60% HBC -0.67% said Monday that it will cut around 5,000 jobs as part of its plan to save between $2.5 billion and $3.5 billion. The group said the cuts will come across Latin America, the U.S., the U.K., France and the Middle East. It added that it also launched a program to reduce the costs of its head office and global support functions and "initiated more efficient business operating models for commercial banking, retail banking and wealth management." ¿ Reported pre-tax profit US$11.5bn: up 3% on 1H10, and 45% on 2H10* ¿ Profit attributable to ordinary shareholders US$8.9bn: up 35% on 1H10, 46% on 2H10 ¿ Return on average ordinary shareholders' equity 12.3%: up from 10.4% in 1H10, 8.9% in 2H10 ¿ Earnings per share US$0.51: up 34% on 1H10, and 46% on 2H10 ¿ Net assets per share of US$8.59: up 17% on 1H10, and 8% on 2H10 ¿ Dividends declared in respect of 2011 totalling US$0.18 per ordinary share, up 12.5% ¿ Loan impairment and other credit risk provisions US$5.3bn: down 30% on 1H10, 19% on 2H10 ¿ Advances-to-deposits ratio 78.7%: up from 77.9% in 1H10, and 78.1% in 2H10 ¿ Core tier 1 capital ratio increased to 10.8% from 10.5% during the period Business highlights: ¿ Commercial Banking profits up 31%: supported by revenues up 14% and customer lending up 12% compared to year end ¿ Retail Banking and Wealth Management profits up 131% as loan impairment charges fell ¿ Global Banking and Markets profits down 12%, but held up well against strong 1H10 ¿ Profitable in all regions: profits up in Asia, Latin America, the Middle East and North America ¿ Revenues stable at US$35.7bn: double digit growth in Asia and Latin America ¿ Customer lending up 8% on year end: led by demand in trade, emerging markets and Europe ¿ In the US, made progress on strategic review of credit card business and announced disposal of 195 non-strategic branches, principally in upstate New York ¿ Announced: closure of retail banking in Russia and Poland; disposal of three insurance businesses ¿ Cost efficiency ratio of 57.5%: compared with 50.9% in 1H10, and 59.9% in 2H10 Stuart Gulliver, Group Chief Executive said: "I am pleased with these results, which mark a first step in the right direction on what will be a long journey."