HSBC has unveiled plans to reduce personnel costs by 8% in a push to save $ 1.5 billion, in which thousands of British employees are expected to be the victims of losses.
Georges Elhederey, the chief executive of the bank, announced that although the 211,000-strong workforce of HSBC will shrink less than 8%, the revision will nevertheless include important jobs and additional costs of approximately $ 1.8 billion in dismissal and restructuring costs .
The move follows a series of business changes at the Asia-oriented lender, including the merger of its wholesalers and a decision to reduce the underperforming investment bank. HSBC has also closed Zing, a digital payment firm, after just one year, because Elhederey focuses on cutting duplication and moving resources to areas with higher growth, such as asset management in Asia.
In addition to restructuring, HSBC reported an increase of 6.5% in the annual profit to a record of $ 32.3 billion, with analysts predictions. The FTSE 100 Giant confirmed a new $ 2 billion share buying and declared a three -month dividend of 36 cents per share, with a further $ 6.4 billion in investors.
The Staff Bonus Pool ran higher to $ 3.8 billion from $ 3.77 billion, despite the reductions of the workforce. In the meantime, HSBC is planning to eliminate the potential wage package of Elhederey, which could reach £ 15.3 million this year, or up to £ 19.8 million if the bank’s share price rises by 50%.
In a separate announcement, the bank postponed its pursuit date for achieving net-zero missions of its own activities and Supply Chain from 2030 to 2050. The relocation comes when HSBC also assesses its 2030 goals for financed emissions-the CO2-footprint from companies that borrow it.
Elhedery said that suppliers have remained in their own sustainability efforts, making it more difficult for HSBC to achieve goals in the short term. The decision follows the American bank giants who withdraw from the Net Zero Banking Alliance in the midst of a domestic recoil, which has made questions about the dedication of the global banking sector to climate promises.
Environmental, Social and Governance (ESG) statistics in the performance -based prices of Elhederey are reduced from 25% to 20%, to make a higher weighting possible about what the bank calls “value creation”. However, critics see this as proof that HSBC enhances strict climate goals in response to market pressure.