HSBC share price: Lender to axe investment banking jobs

on Feb 6, 2019
Updated: Oct 21, 2019
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HSBC Holdings (LON:HSBA) is preparing to lay off dozens of staff in its global banking and markets business, Reuters has reported. The move will come with the Asia-focused lender looking to trim costs.

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HSBC’s share price has slipped into the red in London this morning, having given up 0.67 percent to 649.10p as of 08:52 GMT. The stocks is marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.31 percent lower at 7,155.17 points. The group’s shares have lost more than 10 percent of their value over the past year, as compared with about a 0.3-percent gain in the Footsie.

HSBC to axe IB jobs

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A source with knowledge of the matter told Reuters that HSBC was preparing to lay off dozens of staff in its global banking and markets business, with those affected to be informed this week. The source further said that entire sales teams had been axed, with some members of staff leaving the bank’s London headquarters in Canary Wharf. The newswire noted that the Asia-focused lender had declined to comment on the redundancies, which will mainly impact sales and advisory staff.

Reuters further notes that the cuts follow several weeks of performance reviews and planning for the current  year by the bank’s senior management team.

Analysts on lender

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Numis securities initiated coverage of HSBC with a ‘reduce’ rating and a 575p price target on the shares this week, while Credit Suisse, which is ‘neutral’ on the Asia-focused lender, set a valuation of 695p on the stock last week. According to MarketBeat, the FTSE 100 group currently has a consensus ‘hold’ rating and an average price target of 687.67p.

HSBC is scheduled to update investors on its full-year performance on February 20.

As of 09:04 GMT, Wednesday, 06 February, HSBC Holdings plc share price is 649.90p.

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