The recent announcement by London-based HSBC (NYSE: HBC) that it will lay off 1,100 employees worldwide will have no effects on its Mexican operations, a senior executive of Grupo Financiero HSBC told BNamericas.
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On September 26, the HSBC group, with US$2.55tn in assets at end-June, said 0.3% of the group's workforce will lose their jobs because of the current global business and economic environment, half of those at the bank's operation in the UK and some 100 in Hong Kong.
The UK operation made 34% of the US$10.2bn in earnings before tax made by the HSBC group worldwide in the first half. The Hong Kong unit made 30% of the group's pre-tax profit in the period, the company's latest earnings report shows.
HSBC employed 335,000 people globally at June 30.
Before the global financial crisis deepened in mid-September, Grupo Financiero HSBC had already made some 4,000 people redundant in an effort to reduce costs and expenses, the executive said. This is why the 1,100 job-cut global plan does not affect HSBC's Mexican operation.
Grupo Financiero HSBC's operating profit fell 36% in the first half compared to 1H07 as a 1.2% year-on-year increase in revenues was more than offset by a 9.7% rise in administration and marketing expenses.
First-half operating profit totaled 1.44bn pesos, down from 2.25bn pesos in 1H07. Revenue rose to 12.3bn pesos in the first half from 12.1bn in the period a year earlier, while expenses climbed to 10.9bn pesos from 9.90bn pesos.
Grupo Financiero HSBC, Mexico's fourth largest financial services group by assets, employed 22,803 people at June 30, according to the firm's first half earnings report.
Grupo Financiero HSBC, had assets of 381bn pesos and made 4% of the earnings before tax made by the HSBC group worldwide in the first half.
