The British multinational bank is planning to cut hundreds of investment banking jobs in a cost-cutting drive that will begin in June and last till the end of the year.
Around 500 jobs in HSBC's underperforming businesses, which include its trading, capital markets and advisory divisions, are facing the ax as the bank reins in expenditure amid a worsening economic outlook, Bloomberg reported (behind paywall), citing people familiar with the plan.
The cuts are reportedly part of chief executive John Flint's plan unveiled in 2018, nicknamed «Project Oak,» which aims to grow the firm's return on equity from 6.8 percent in 2017 to 11 percent in 2020. Flint said the bank would focus on ensuring revenues grow faster than costs by being more focused on its traditional strengths of corporate and retail banking.
The bank has been undergoing a turbulent period of late – Flint blasted top managers at a meeting in Hong Kong last month for missing revenue and cost targets. In August 2018, the Financial Times reported that unnamed HSBC executives leaked a memo that said its investment banking strategy had «utterly failed» and its «performance is really appalling,»
Ramping Up in Asia
However, amid the cuts, the bank is also expanding in other areas – finews.asia reported earlier this week on HSBC's plans to grow its private banking business in Asia. This includes adding 300 staff at its Asia retail wealth management arm by the end of the year, and boosting its wealth management staff in Singapore by 50.
The bank is also increasing its insurance distribution and product offerings in Hong Kong, China and Singapore.
