The interim chief executive of HSBC announced plans to od remodel ”large parts of the bank as the Asia-focused lender announced a 24 per cent decline in third quarter profits.
Noel Quinn, who was made interim CEO in August, said that while the business had up held up in a challenging environment ”, there were other parts – mainly in Europe and the US – where“ performance was not acceptable ”.
He added: previous Our previous plans are no longer sufficient to improve performance for these businesses, given the softer outlook for revenue growth. Are We are therefore accelerating plans to remodel them, and move into capital.
Mr Quinn was made interim chief executive in August following the abrupt ousting of his predecessor John Flint, who had lost the confidence of the bank’s board of directors.
The FT has recently reported that Mr Quinn had embarked on a plan to cut costs and divest some businesses that threatened up to 10,000 jobs at the bank, which employs around 237,000 people.
HSBC reported that third quarter net profits had fallen by 24 per cent to $ 2.97bn, which was about 14 per cent below the consensus analyst forecast. Revenues fell by 3.2 per cent to $ 13.35bn, undershooting analyst expectations by 3 per cent.
The bank posted a return on tangible equity – a key measure of profitability – of 6.4 per cent, versus 10.9 per cent a year ago and well below analyst forecasts of 9.5 per cent.