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HSBC share price:Bank to move headquarters of UK division

on Mar 25, 2015
Updated: Oct 21, 2019
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HSBC Holdings Plc (LON:HSBA) will move the headquarters of its UK retail and business banking operations from London to Birmingham, in response to new regulatory requirements for lenders, designed to minimise the risk of another financial crisis. Europe’s largest bank announced yesterday that the move would involve relocation of 1,000 jobs from the UK capital to Birmingam, which would start in mid-2017.

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“Given that the customer base, employees and branch network of the ringfenced bank cover all of the UK, London isn’t necessarily the best place for the head office,” HSBC’s UK chief executive officer António Simões said in a memo to employees. He described Birmingham as a “growing city” with the “expertise and infrastructure” to support the bank.
All large lenders in the UK have been told by the government to hive off their UK retail operations into ringfenced entities, with separate funding, leadership and oversight from their riskier activities. The aim is to avoid any need for government bailout of failed banks in the case of a new financial crisis. Lenders must comply with the new requirements by 2019.
HSBC is the first bank to announce the location of headquarters for its new domestic bank. Currently the firm is in advanced talks to acquire a 250-year lease on a new office at Arena Central in Birmingham. HSBC already employs 2,500 people in the city. Around 48,000 of the bank’s 257,000 employees work in the UK.
In today’s trading, HSBC shares were up 0.9 percent at 583.24p, as of 09:28 UTC. The stock has lost nearly five percent of its value since the start of the year. The company’s market capitalisation currently stands at £112.9 billion.
The current consensus opinion of analysts is that investors should hold their position in the company. This stance has been maintained since the sentiment of investment analysts deteriorated on November 26, 2014.
As of 10:05 GMT, Wednesday, 25 March, HSBC Holdings plc share price is 582.25p.

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