HSBC set to 'confirm 10,000 job losses'

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The Independent Online

HSBC will confirm 10,000 job losses as it announces its interim results tomorrow, it was reported.

The banking giant is expected to reveal disappointing figures for the six months to June 30 2011.

There has been much speculation about planned job losses, and last night it was reported that HSBC is to confirm it is cutting at least 10,000 jobs.

An HSBC spokesman said the group was declining to comment on the reports.

The bank starts the results season tomorrow, which is expected to provide a snapshot of a gruelling start to 2011.

Barclays, Lloyds Banking Group and Royal Bank of Scotland are all also expected to reveal a drop in profits in their interim updates over the coming week.

HSBC is anticipated to report pre-tax profits of 10.9 billion US dollars (£6.7 billion) for the period, down from 11.1 billion US dollars (£7 billion).

The main focus is likely to be on progress with cost-cutting after boss Stuart Gulliver unveiled a multibillion-dollar savings programme earlier this year.

The payment protection insurance (PPI) mis-selling scandal; planned ringfencing of retail banking operations as proposed by the Independent Commission on Banking; and a volatile global economic climate have all affected the accounts of the four lenders.

Taxpayer-backed Lloyds and RBS have seen their shares plunge 30% and 17% respectively in the last six months alone, while Barclays' shares have plummeted 26% and HSBC has lost 14%.

Barclays, which reports on Tuesday, is expected to reveal a 24% drop in reported profits to £1.8 billion, according to broker Seymour Pierce.

Taxpayer-backed Lloyds Banking Group is expected to report pre-tax profits of £1 billion on Thursday, a steep reduction on the £1.6 billion reported a year earlier.

Royal Bank of Scotland closes the week with its results on Friday, which are expected to reveal £611 million in reported profits, down 19% on the previous year, Seymour Pierce said.

PA

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