HSBC, the largest bank in Europe by assets will embark on a vast restructuring plan after announcing on Tuesday a fall of a third of its taxable profit. In 2019, it was 12.32 billion euros while analysts expected a sum of around 20 billion.
The objective of this plan of the British bank is to save 4.5 billion dollars by 2022. This will result in the loss of 35,000 jobs in three years via unscheduled departures, or 15% of its workforce worldwide.
The bank will also initiate gross disposals of $ 100 billion in assets as well as a reduction of its bank in Europe and the United States and a reorganization of the activities of its investment bank.
In the United States, HSBC plans to close about a third of its 224 branches. In Europe, the establishment should also reduce its commercial activity. HSBC also plans to reduce its equity trading and sales teams.
In France, the bank could consider selling all or part of its retail banking activity, which has more than 8,500 employees in total.
The bank penalized in Asia
But above all the bank which rakes the majority of its income in Asia has already suffered the full brunt of the trade war between the United States and China or even Brexit could be penalized again with the epidemic of the coronavirus.
HSBC has warned that if this health crisis persists could reduce its revenues but also cause an increase in bad debts due to disruptions in supply chains.
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"We will reduce capital employed and costs in activities that are not performing well enough to continue investing in activities that are more profitable and have better growth prospects," the bank said in a statement.