19th Mar 2020 06:39
(Alliance News) - HSBC Holdings PLC's restructuring could be delayed due to the Covid-19 outbreak, the FInancial Times reported on Wednesday.
The FT reported that four people briefed on the matter were informed that should the contagion become a long-term crisis, the disruption would likely delay the overhaul .
In February, HSBC said it plans to simplify its group structure, which involves the consolidation of the back and middle office to a single model for Commercial Banking and Global Banking, merging Retail Banking and Wealth Management & Global Private Banking into a new Wealth & Personal Banking division, and reducing geographic reports from seven to four at group executive level.
To achieve this, the bank said it expect to incur restructuring costs of USD6 billion and asset disposal costs of USD1.2 billion for the period ending 2022. The bank also plans to chop 35,000.
Current market conditions would make it difficult to dispose of assets, the FT reported.
https://www.ft.com/content/e97f4722-693c-11ea-800d-da70cff6e4d3
On Tuesday, interim chief Noel Quinn was named as the bank's new permanent boss.
"Noel has proven to be the outstanding candidate to take on a role permanently that he has performed impressively on an interim basis since August 2019," said Chair Mark Tucker.
Quinn said there is "much that remains to be done" at HSBC.
Shares in the company closed 0.7% lower at 491.00 pence each in London on Wednesday.
By Eric Cunha; [email protected]
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