Belfast Telegraph

HSBC restructures global banking division in agility drive

HSBC has pressed ahead with a restructure of its global banking division to make it "more agile" and save tens of millions of dollars in costs.

The banking giant told staff in a memo on Monday that it would bring together its sector bankers and its product bankers into one area of the business.

The shake-up will lead to the creation of the Corporate, Financials and Multinationals Banking group.

The bank announced at the end of February that it would merge capital financing and banking to create a single global banking division.

The restructure is reported to contribute tens of millions of dollars to a 1.1 billion dollars (£762 million) global savings programme in the global banking and markets business.

It is understood the move may also lead to a few dozen job losses.

The memo stated: "Our new structure will deliver the best outcome for our clients by bringing our country, sector and product teams closer together - and improve returns for our shareholders by improving our profitability and generating efficiencies."

Europe's biggest bank announced in June last year that it would cut between 22,000 and 25,000 jobs globally including a reported 8,000 in the UK as part of an overhaul to slash costs and reshape the business.

It came as the bank sought to deliver annual cost savings of around 4.5 billion US dollars (£2.9 billion) to five billion US dollars (£3.3 billion) by the end of 2017.

In May, HSBC posted a sharp drop in profits for the first three months of the year after it was hit by ''extreme levels of volatility'' in financial markets in January and February.

The banking giant reported an 18% fall in underlying pre-tax profits to 5.43 billion US dollars (£3.7 billion) for the first quarter.

On a bottom-line basis, profits fell 14% to 6.11 billion US dollars (£4.2 billion).

The bank said it was a ''resilient'' performance in difficult market conditions, with the entire investment banking sector suffering after stock markets tumbled at the start of 2016 amid an oil price rout.