HSBC shedding 1,100 jobs worldwide - Malta not affected
HSBC Holdings Europe's biggest bank, said today it is cutting 1,100 jobs in its global banking and markets operation, or 4 percent of the unit's total, as it weathers the global financial crisis.
"We're doing it because of market conditions and the economic environment, and our cautious outlook for 2009," Hong Kong-based spokesman Gareth Hewett told Reuters.
The jobs are in front and back office operations. About half of the positions affected are in the United Kingdom, where HSBC has its headquarters, and 100 of the positions are in Hong Kong, where the bank's large Asian operations are based.
The job cuts do not affect Malta, a spokesman for HSBC told timesofmalta.com
Globally, HSBC employs about 335,000 people.
"Markets continue to be challenging and difficult but our strategy leaves us well positioned for the next wave of global growth, when it comes," Hewett said.
The financial services sector is hemorrhaging jobs amid the worst financial crisis since the Great Depression, which has seen unprecedented change on Wall Street and the demise of venerable firms such as Bear Stearns and Lehman Brothers
HSBC was one of the first banks to feel the sting of the subprime mortgage crisis in the United States and has booked write-downs or losses of $18.7 billion since the start of the global credit crunch last year.
In August, the bank posted a 28 percent fall in first-half pre-tax profit to $10.2 billion as it took a $14 billion hit from bad debts on U.S. home loans and asset writedowns.
In its global banking and markets business, pre-tax profit fell 35 percent in the first half to $2.1 billion, although that was a 37 percent increase from the second half of 2007.
There is no change in strategy at Global Banking and Markets, which is to be a leading emerging markets-led and financing-focused wholesale bank," Hewett said.
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11 Comments
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Mark Fenech
Sep 26th 2008, 19:09
@Joseph Aquilina
Better check out BOV before you make these statements ; )
R.Gauci
Sep 26th 2008, 18:22
@Jsmith
Thanks very much for your explanation you did it well considering the fact you are not an expert :)
Steve Sant
Sep 26th 2008, 16:35
Well, the Prime Minister in his budget speech said that we should "bite the bullet". In my opinion he better be carefull when choosing his words, because government might have to bite the better part of that bullet by the way things are moving. Many citizens are already on the high alert, with investment on the low side, any more phrases would kill the cow.
Joseph Aquilina
Sep 26th 2008, 16:32
Malta is not affected by the financial situation abroad because we keep our money taht in maghduma. It's the safest way to save.
Charles Muscat
Sep 26th 2008, 15:21
It is time politicians and big brother get it in their head that the Maltese people are not stupid any more to believe one word of what they say. Politicians must stop feeding the Maltese mushrooms cause they do not live in the dark any more. People must live in the real world and not blind folded. Malta must stop saying everything is super and better than others, nothing effects Malta, everything the best of the best. Jawra in the mediterrenean. BOV is hardly affected by the crunch. Come on, big developed countries are feeling the pinch imagine Malta. One problem is left among the Maltese people, they praise politicians and brag about them.
Anton Mallia
Sep 26th 2008, 13:15
@John Borg
I'm no political expert but since when a Minister speaks just on a personal level? It is only evident that when a Minister declares something, this is on behalf of the Ministry and the Government he represents!
Also, if you read the statement well, the reassurance was given to the Minister by CBM and MFSA...and I ' m sure these two organisations have enough of that financial expertise you are asking for!
john borg
Sep 26th 2008, 12:23
A Government statement issued yesterday assured us that the Minister of Finance Tonio Fenech (and not the Ministry or the Government) have been monitoring closely the global financial turmoil. As far as i know, the Minister, with due respect, is not a financial wizard. So why is it to be him to monitor the situation but not the Ministry or the Government as a whole! Ghal Gonzipn kollox possibbli.
Jsmith
Sep 26th 2008, 12:05
In simple terms what this means is that the cause was not over-pricing of property, but rather the practice of lending to individuals in the US with a poor credit rating....that where actually high risk loan holders with a much higher chance of going bust. In Malta, the rule of thumb is to lend a sum, which premium does not exceed one-fourth of your income. In the us, people with bad credit rating (i.e. have already defaulted on previous loans) where given more loans against a higher interest rate to reflect the higher risk, which made such loans attractive to banks to participate in due to higher interest rates and higher revenues......whereby the premium (pagament fix-xaghar) on such loan sometimes reached or even exceeded half the monthly income of the loan holder/s as opposed to Malta's of 1/4.
Luckily enough this bad practice was only unregulated in the US.....so the direct effects on house prices is mostly in the US. Any effect on house prices Globally is only an indirect effect or other reasons, like over supply or cautious demand.
P.S. the fact i answered your question, does not mean I am an expert though. ;)
l Galea
Sep 26th 2008, 11:40
http://uk.news.yahoo.com/pressass/20080926/tuk-ftse-falls-as-us-talks-break-down-6323e80.html
Press Assoc. - 34 minutes ago
Blue-chip stocks were deep in the red after talks broke down in Washington over America's planned 700 billion US dollar (£381bn) bank bail-out.
(Advertisement)
News that the negotiations had faltered spooked investors, who had hoped on Thursday that a deal was close to being struck.
London's FTSE 100 Index plummeted more than 90 points into the red at one stage in early trading - a fall of 1.8%.
Talks are due to resume on Friday among Congressional leaders in the US, but there are mounting fears that if the plan is not passed it will throw global stock markets and the US economy back into turmoil.
President George Bush warned earlier this week that the plan represented the best chance the US had of avoiding a severe recession or even a depression.
In London on Friday, banks and insurance firms were under pressure, giving up strong gains seen in Thursday's rally.
Lloyds TSB - soon to take over ailing rival HBOS - was the leading faller in the sector, down 4%, with NatWest parent Royal Bank of Scotland down 3%.........
l Galea
Sep 26th 2008, 11:19
Tightening up and shedding workers and still they ask the gullible for bonds.
Hope those who responded do not regret it.
R.Gauci
Sep 26th 2008, 11:11
Can some expert please explain the following:
In August, the bank posted a 28 percent fall in first-half pre-tax profit to $10.2 billion as it took a $14 billion hit from bad debts on U.S. home loans and asset writedowns.
What does it means bad debtson home loans? Overpricing the property market? As it looks the main reason for this financial crisis all over the world.