Home » Business » HSBC Cuts Jobs, Sells New York Offices and Announces $11.5 Billion Pre-Tax Profits

HSBC Cuts Jobs, Sells New York Offices and Announces $11.5 Billion Pre-Tax Profits

The HSBC Group has announced its 2011 interim results with the banking operation taking in $11.5 billion in pre-tax profits. The group has also announced efficiency measures including a reduction of 5,000 staff and the sale of 195 retail units in New York with an expected price tag of $1 billion.

In a presentation to investors, the group promised centralisation of activities, streamlining of the group’s IT spending and a reduction in baseline expenses. The group’s retail banking in Poland and Russia will be closed. 183 HSBC branches in New York’s Upstate region will be sold along with four branches in Northern Westchester County, NY, two branches in Putnam County, NY, and six branches in Connecticut. The group is aiming to “sustainably” reduce costs by US$2.5-3.5bn.

The bank comfortably passed the recent European stress tests which saw the necessary ratio 3.5% above the required level of 5%.

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Editors and staff from the Business Desk at The Global Herald.

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