Cost cuts nearly double HSBC profits

Suzie Neuwirth

HSBC’s chief executive today hinted that there would be more job cuts at the British bank, to be announced at next week’s strategic review.

The bank’s results showed that cost-cutting measures have been effective, with pre-tax profits almost doubling to $8.4bn (£5.4bn) in the first quarter of 2013, compared to $4.3bn year-on-year.

While the bank’s workforce has already been slashed from 300,000 to 254,000, group chief executive Stuart Gulliver suggested during the results briefing that there could be more cuts announced at the 15 May investor update.

In today’s announcement he commented that “there are still challenges ahead” but that HSBC has strengthened its capital position and its strategic direction “remains unchanged”.