HSBC Sri Lanka is believed to have withdrawn from custodian banking services with the exception of high-end retail and corporate clients, as part the bank’s a global restructuring drive, Mirror Business learns.
When contacted by Mirror Business, representatives from the bank stated that all aspects of its business are currently under review in line with HSBC’s global realignment away from retail business, however declined to comment further on specific changes.
Globally, HSBC increased its profits by nearly 50 per cent to US$ 8.4 billion in the first quarter of this year, largely a result of cost cutting and restructuring, including 30,000 job cuts worldwide.
The brunt of job cuts were expected to be borne by senior and middle management. Ramifications of the bank’s global restructuring were felt last year when the bank offered its employees a Voluntary Separation Scheme.
The bank remained tight-lipped on details of the scheme. However unofficial sources had stated that the bank had cut its workforce by as much as 20 per cent.
At the time, the bank was reported to have maintained a workforce of approximately 1,700. According to 2012 financial accounts of the bank, the workforce remained at 1, 457.
The restructuring drive in Sri Lanka was followed by the appointment of a new CEO, Patrick Gallagher as a replacement for long-standing former CEO, Nick Nicolaou effective April 30 2013.