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Shake-up at HSBC, where “local banks of the world” are planning to overhaul

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Or year HSBC For sale as a local in the world bank.. At airports around the world, it sent a message: if you are here, so are we.

The idea of ​​being ubiquitous should have been good from a business perspective, as it requires lower costs. capital..

From a marketing perspective, a world-class businessman will be reassured that his bank looked like Phuket in Paris.

Tourists may feel the same.

London is very important.

It didn’t always work, and the size of HSBC could obviously be an obstacle. Most notably, in 2012, we had to pay a fine of nearly $ 2 billion to launder the proceeds of cocaine gangs in Mexico and Colombia.

At that time, no one was talking about the low cost of capital. At that point, HSBC seemed awkward and probably unmanageable.

Since then, the thinking of regional banks around the world has been cracked.

Today, HSBC has confirmed its clear plans to increase its presence in Asia and abolish the retail banking sector in the United States. Sales negotiations are in progress.

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There was some good news London, CEO Noel Quinn Claims that the city remains central to his plans. The Canary Wharf Tower can accommodate up to 10,000 staff and is nearly full if conditions permit.

Canary skyscraper lease continues until 2027

“London is very important,” he told Standard. “Our job is to connect London to other parts of the world.”

Quinn, along with Kiwi’s chief financial officer, Ewen Stephenson, who arrived to help slim down the bloated car accident that was the Royal Bank of Scotland (now renamed NatWest), is relatively in this role. I am a newcomer.

Chairman Paul Tucker is considered a tough cookie and must do so.

Tensions between Hong Kong and China mean that Tucker’s job is now “80% politics and 20% business,” one source told the Financial Times.

All three executives seem to be more open to change and willing to admit errors than their previous management team.

In one story from the city, Stevenson looks at the number of people who attended the conference and who actually contributed to the meaning during the first few days at HSBC.

Stevenson was recently given additional responsibility to drive the changes that banks need. He got a £ 147,000 salary increase to raise his pre-bonus base salary to £ 1.1 million, which was sent to charity in the first year and is hard to imagine being adopted by old guards. That is.

No one says HSBC is not bureaucratic. Part of the reason is due to its size and history.

The Hongkong and Shanghai Banking Corporation was founded in 1865 and moved to London when it acquired Midland Bank in 1993.

Insiders then said Midland stands for “a lot of controversy, little agreement, and nothing is done.” Insiders now say that working at HSBC is similar to working for a civil servant.

It’s a good employer, but dynamism may not be its most obvious feature.

With today’s results, HSBC has resumed paying dividends to investors. Regulators allow this, as profits plummeted 35% to $ 8.8 billion.

The overwhelming majority of those interests were made in Asia.

US weapons have lost money, a bunch of it. European weapons have worsened, declining by more than $ 4 billion.

This explains why banks plan to invest $ 6 billion to expand in Hong Kong, China and Singapore. The French retail banking business, which is also blocked.

Quinn, who claims to be based in London, states that the “center” of business is in Asia.

A total of 35,000 headcount reductions will be made across Europe and the United States, while reducing travel and office costs.

Meanwhile, HSBC’s stock price is sluggish. In January 2018 it was about 790p – today it is 428p and at that price the bank is still valued at £ 87 billion.

In order to revalue the stock, Quinn, Tucker and Kyodo need their plans to bear fruit.

So far, the city has been overwhelmed by what it has heard, but reassured that it is focused on cost and growth in Asia.

“This year was a tough year,” Quinn said. There is a lot to do.

Shake-up at HSBC, where “local banks of the world” are planning to overhaul

Source link Shake-up at HSBC, where “local banks of the world” are planning to overhaul

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