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Showing posts with label HSBC bank. Show all posts
Showing posts with label HSBC bank. Show all posts

Tuesday 2 February 2016

HSBC to freeze salaries, hiring in 2016 in battle to cut costs

 
Video: https://youtu.be/Q4V8L-98LVY  

Why Refusing a Pay Cut May Get You Fire?

HSBC Holdings Plc will impose a global hiring and pay freeze as part of its drive to cut as much as $5 billion in costs by the end of 2017.

The measures, which affect the consumer and investment banking businesses, were outlined in a memorandum received by employees on Friday, Gillian James, a spokeswoman for the bank, said Sunday in an e-mailed statement. Europe’s largest bank, which will release full-year earnings on Feb. 22, is mulling whether to move its headquarters away from London, partly because of the tax burden and tougher regulatory scrutiny.

“This is in line with HSBC’s moves to lower operating costs,” said Richard Cao, a Shenzhen-based analyst at Guotai Junan Securities Co. “HSBC can’t escape from the global economic slowdown and worsening asset quality like other global banks.”

HSBC Chief Executive Officer Stuart Gulliver, 56, in June outlined a three-year plan to pare back a sprawling global network by shutting money-losing businesses and eliminate as many as 25,000 jobs as he seeks to boost profitability. Barclays Plc extended a freeze on hiring new staff indefinitely in December, while European lenders including Credit Suisse Group AG and Deutsche Bank AG are cutting thousands of jobs to shore up earnings.

The moves were reported earlier by Reuters.

The shares fell 1.6 percent to 484.25 pence at 10:10 a.m. in London, extending losses this year to about 9.6 percent. They dropped 12 percent in 2015.


Under its three-year plan, the London-based lender is seeking to reduce the number of full-time employees by between 22,000 and 25,000. In the U.K., the bank may eliminate as many as 8,000 jobs.

As part of its focus on more profitable markets, HSBC is reviewing its operations in Lebanon and may exit the Middle Eastern country, people with knowledge of the matter said earlier this month. The bank is closing its Indian private-banking business, people familiar with that move said in November.

HSBC is close to concluding an eight-month review into the best location for its headquarters, with Hong Kong seen as the leading candidate city. The lender is likely to stay based in London due to the vast logistics of relocating, Martin Gilbert, chief executive officer of Aberdeen Asset Management Plc, told Bloomberg Television in January. Aberdeen is one of the British bank’s biggest shareholders.- Bloomberg

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Aug 21, 2014 ... Nur Shila faces 12 principal charges in relation to transferring money from the HSBC Bank accounts to other bank accounts, theft, getting ...

Jul 18, 2012 ... HSBC concealed more than $US16 billion in sensitive transactions to Iran, ... SHAMED HSBC Bank executives have admitted to allowing Iran, ...
 
Aug 3, 2011 ... LONDON (MarketWatch) — A running tally of planned job cuts by European banks reached around 40,000 Tuesday, little more than halfway ...
Feb 28, 2012 ... HSBC's annual profits rose 15% to £13.8bn ($21.9bn) in what it called a year ... The bank said that 2011 was a year of major progress for HSBC.

Jul 31, 2012 ... The report criticised a “pervasively polluted” culture at the bank and said that HSBC's Mexican operations had moved US$7bil into the bank's ...
 
Jun 6, 2013 ... UK, European and Asian banks, on average, forecast losses of nearly 30% higher than ... HSBC, the largest British bank, has appointed former ...

Thursday 6 June 2013

Bank losses worrisome !

It is imperative for banks to have a better prediction of their losses so that their capital position will be better reflected

IT may seem strange to analyse bank losses at a time when major banks, even the taxpayer-owned ones, are profitable.

Moreover, major economies are also said to be turning around. So why would we be so worried about bank losses?

According the analysts at Barclays, this is related to the bank's risk-weighted assets.

With so much focus on capital and the need to boost capital for the taxpayer-owned banks, it is inevitable that the question on losses would pop up.

That's when the banks accurately forecast the capital required.

However, if they do not have a fairly accurate idea of the losses they may be incurring, they may not be allocating enough capital buffer for it.

Therefore, the analysis on bank losses should be seen in a positive light as it helps to shed information early on the capital position of the bank.

The startling fact is that the banks themselves may not be able to predict their losses with a fair degree of accuracy, said the Telegraph.

UK, European and Asian banks, on average, forecast losses of nearly 30% higher than those they actually faced, the survey by analysts at Barclays found.


According to the report, Lloyds and HSBC predicted a default rate on their lending portfolios more than 50% above what they actually experienced.

Barclays was found to have been too pessimistic, particularly with assets in its investment bank where it forecast a default rate 78% higher than in reality.

“Most of the time banks' PDs (predicted defaults) are lower than forecast, suggesting a degree of conservatism,” the analysts said, as quoted by the Telegraph.

“The forecasting errors' can be massive, which raises questions over both their predictability and hence meaningfulness of the resulting risk weighted assets,'' they said.

It is therefore imperative for banks to have a better prediction of their losses so that their capital position will be better reflected.

Banks' boards of directors are fortifying themselves with new knowledge.

HSBC, the largest British bank, has appointed former director-general of British Security Service, Sir Jonathan Evans, onto its board, with expertise in counter terrorism and cyber threats.

With the accusations of money laundering, these major banks are coughing up a lot of money to engage top guns that can deal with the intricacies of it all.

Before terrorim, it was risk posed by over dabbling in derivatives. Banks engaged armies of risk and compliance oficers

Whether these counterrorism and cyber threat themes really emerge into trends remains to be seen.

A survey by pension fund The Scottish Widow indicated that in 10 years' time, Britons will have to work till 70.

They do not have enough savings to last through, as they are currently caught up in daily living expenses, it was reported in The Guardian.

That sounds chilling but fast becomig a reality soon in many other countries.

Many will start rushing for health and pharmaceutical products to strengthen themselves while others will just struggle on.

Plain Speaking by YAP LENG KUEN

>Columnist Yap Leng Kuen reckons it's easier to think positive.

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