LONDON (Reuters) - HSBC was set to report quarterly profit of almost $6 billion on Tuesday as Europe's biggest bank benefits from a rebound in investment banking income and falling bad debts, although it is struggling to cut costs.
LONDON (Reuters) - HSBC's <HSBA.L> first quarter profits fell 20 percent from a year ago to $6.8 billion as revenue dipped at its investment bank, while last year's earnings were swelled by asset sales. HSBC, which is Europe's biggest bank but makes most of its profits in Asia, said it had continued to experience "muted customer activity" in April.
HSBC missed market expectations with a 9 percent increase in annual profit and warned of greater volatility in emerging markets this year, sending shares in Europe's biggest bank to a 15-month low. HSBC, which is based in London but made two thirds of last year's profit in Asia, has axed more than 40,000 jobs and sold or closed 60 businesses over the past three years to cut costs, but has not yet reached its cost efficiency and profitability targets. HSBC shares were down 3.4 percent at 632 pence by 1215 GMT, the weakest performer in a flat European banks index.
HSBC Holdings Plc, Europe’s largest bank, will eliminate as many as 14,000 more jobs as Chief Executive Officer Stuart Gulliver set out plans to cut an additional US$3-billion of costs as he tries to revive profitability.
The bank expects to reduce the number of employees to as few as 240,000 over the next three years, Gulliver told reporters on a conference call Wednesday as he updated investors on his strategy for the London-based lender. HSBC had already announced plans to reduce headcount to about 254,000.
JPMorgan Chase & Co., the biggest U.S. bank, plans to reduce headcount by as many as 19,000 people in its mortgage and community banking businesses through 2014 as Chief Executive Officer Jamie Dimon cuts expenses.