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HSBC profit slumps 70 per cent, job cuts announced
HSBC, Europe's biggest bank, today reported a 70 per cent slump in annual net profits as bad debts surged to almost 25 billion dollars. The British banking group said it planned to raise $17.8 billion and would axe 6,100 jobs in the US by shutting most of its HFC and Beneficial branches.
HSBC, Europe's biggest bank, reported on Monday a 70 per cent slump in annual net profits as bad debts surged to almost 25 billion dollars (20 billion euros), causing it to launch a record British rights issue.
The British banking group said it planned to raise 12.5 billion pounds (17.8 billion dollars, 14.2 billion euros) and would axe 6,100 jobs in the United States by shutting most of its HFC and Beneficial branches.
HSBC said net profits tumbled to 5.728 billion dollars in 2008 compared to 19.133 billion dollars in 2007 as the global financial crisis took its toll.
"In this difficult environment, we missed our profitability targets," HSBC chairman Stephen Green said in the group's earnings statement.
"The coming twelve months will be difficult. We expect parts of Asia, the Middle East and Latin America to continue to outperform Western economies, but to be constrained by the global downturn."
