HSBC Holdings PLC (NYSE:HBC) Stock Drops on Dreary Earnings Report, Works on Job Cuts

  on Nov 05,2012 Posted in Business News ,Finance
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Stock of HSBC Holdings PLC (NYSE:HBC) plunged 2.4% in London trading session on Monday, affecting over Britain’s benchmark FTSE 100 stock index, following the global banking major announced a 52% decline in 3Q net income attributable to stockholders.

HSBC reported earnings per share declined to $0.13 as compared to $0.28 in the last year quarter, while revised profit before tax more than twofold in the quarter to $5 billion.

In the recent quarter, the bank further stated that it reserved a further $800 million provision associated to a US money-laundering probe.

We are highly involved in meetings with US authorities to try to hit a deal, but there was nodeal up till now, HSBC reported.

Cut Jobs, Cut Costs
HSBC has lowered its amount of staff by nearly 30,000 in the past two years and stated further job cuts are possible throughout the bank to get its cost effectivenessgoals.

The bank had 266,700 labors at the conclusion of September, lower from 296,000 at the conclusion of 2010 and lower almost 21,000 this year.

HSBC Chief Executive Stuart Gulliver stated almost 15,000 of the reduction were because of disposals by the bank and he predicted more reductions ahead of the conclusion of 2013 to enhance cost efficiency.

We are perhapspossibly to see the headcount lower further, in terms of the core lowering, there was still some more to go, he informed reporters on a conference call.Gulliver further stated in May 2011 he would lower almost 30,000 jobs as an element of a reformationproposal.



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