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Bank moving 1,000 jobs

HSBC shares plunge on 62% profits slump

HSBC has today unveiled a 62% slump in annual pre-tax profit after taking a number of one-off charges, notably the sale of operations in Brazil.

Chairman Douglas Flint said the bank will retain its HQ in London but may relocate about 1,000 jobs from London to Paris over the next two years, depending on how negotiations over Britain’s departure from the EU develop.

HSBC makes most of its money outside the UK, with Asia accounting for the bulk of its global pre-tax profits.

The bank closed 223 UK branches last year and has already confirmed plans to shut a further 62.

Shares in Europe’s biggest bank fell in Hong Kong as profit before tax plunged from $18.87 billion to $7.1 billion, worse than expectations.

The figure included a $3.2 billion impairment of goodwill in its global private banking business in Europe and the impact of its sale of operations in Brazil, the bank said.

Aside from this, it said trading was “broadly satisfactory”, Mr Flint added: “the outcome of the US election has added to concerns about a rise in protectionism.

“This has been accentuated in many parts of the world by technological change and income inequality.”

“We have considered it appropriate to write off the remaining goodwill in the European private banking business.”

The bank also unveiled a  $1 billion share buy-back, taking the total to $3.5 billion.

 

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