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HSBC First-Half Earnings Advance

HSBC (HSBC) unveiled plans to initiate a share buy-back of up to $1 billion and a change in its executive leadership as it reported growth in fiscal first-half earnings on Monday amid reports that the bank will slash thousands of jobs.

Chief executive John Flint has stepped down from his position at the helm by “mutual agreement” and interim chief executive Neil Quinn was named, the bank said in a separate statement on Monday. Separate reports in the media claimed that the bank will be seeking to eliminate more than 4,000 jobs.

“We expect this year to have $650 million to $700 million of severance costs; that involves less than 2% of our workforce,” Bloomberg news agency cited chief financial officer Ewen Stevenson as saying in a call with analysts. “It’s about 4% of our total salary costs, so you should assume from that it is targeted at more senior people in the organization.”

HSBC reported revenue of $29.37 billion in the six months to June 30, up from $27.29 billion in the corresponding period of the prior year. Diluted earnings per share came in at $0.42, up from $0.36 a year earlier.

Reported profit before tax was worth $12.41 billion, up from $10.71 billion a year earlier. Broken down by geographical region, the biggest contributor was Asia, which generated $9.78 billion in reported profit before tax, up from $9.38 billion a year earlier.

HSBC (HSBC) unveiled plans to initiate a share buy-back of up to $1 billion and a change in its executive leadership as it reported growth in fiscal first-half earnings on Monday amid reports that the bank will slash thousands of jobs.

Chief executive John Flint has stepped down from his position at the helm by “mutual agreement” and interim chief executive Neil Quinn was named, the bank said in a separate statement on Monday. Separate reports in the media claimed that the bank will be seeking to eliminate more than 4,000 jobs.

“We expect this year to have $650 million to $700 million of severance costs; that involves less than 2% of our workforce,” Bloomberg news agency cited chief financial officer Ewen Stevenson as saying in a call with analysts. “It’s about 4% of our total salary costs, so you should assume from that it is targeted at more senior people in the organization.”

HSBC reported revenue of $29.37 billion in the six months to June 30, up from $27.29 billion in the corresponding period of the prior year. Diluted earnings per share came in at $0.42, up from $0.36 a year earlier.

Reported profit before tax was worth $12.41 billion, up from $10.71 billion a year earlier. Broken down by geographical region, the biggest contributor was Asia, which generated $9.78 billion in reported profit before tax, up from $9.38 billion a year earlier.

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