HSBC to grow in China despite job cuts
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Shanghai Daily, August 3, 2011
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A visitor is talking with HSBC staff at a financing exhibiton in Shanghai on November 18, 2007. The bank launched private banking services in China on Monday. |
HSBC will continue hiring and investing in China despite its plan to slash up to 30,000 jobs globally by 2013, its Asia-Pacific head disclosed Tuesday.
HSBC, Europe's biggest bank, will not slow down its investment and expansion on China's mainland despite the country's slower economic growth and the bank's global cost saving strategy, said Peter Wong, chief executive of HSBC in Asia-Pacific.
"We will continue investing in China," he told reporters in a video conference. "We will increase our headcount in China, not decrease."
The bank's pre-tax profit on the mainland rose 38 percent on an annual basis to US$1.8 billion in the first half of this year, including contributions from its Chinese affiliates such as the Bank of Communications and Ping An Insurance (Group) Co. The pre-tax profit from the mainland accounted for 15 percent of its group pre-tax profits in the first half, or 26 percent of the pre-tax profits in Asia. HSBC's pre-tax profits grew 16 percent annually to US$6.8 billion in the first half of 2011 in the region. The region accounted for 59 percent of its total group pre-tax profits.
HSBC's organic business skyrocketed 171 percent to US$279 million in the first six months on the mainland.
The robust China business helped the bank to post strong earnings in Asia.
"HSBC in Asia is on track to deliver on our strategy to create a diversified revenue momentum from both quality asset growth and increased fee income," Wong said.
The London-based bank plans to add about 1,000 employees on the mainland to maintain its growth, Wong said earlier in May.
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