HSBC Holdings plc (NYSE:HBC) (LON:HSBA) (HKG:0005) is expected to announce more job cuts this week. It said in its earnings report last week that it would give an update on its cost reduction plan this week, and the bank was said to be planning to slash thousands of jobs two months ago.
HSBC Sells Off Businesses, Cuts More Costs
In the last two years, HSBC Holdings plc (NYSE:HBC) (LON:HSBA) (HKG:0005) has sold off more than 50 of its businesses, and the bank still has less than a year left on its cost cutting plan. This year the bank has already sold off nine of its units, and it could be making plans to sell up to 20 more within the next 24 months. Experts believe it makes sense for the bank to sell off more of its minority holdings and insurance operations like the Korean insurance business it sold recently.
Reuters reports that the bank’s CEO Stuart Gulliver is expected to say that they’re planning to slash at least $1 billion more in expenses. HSBC has already eliminated more than 65,000 positions, and on Sunday The Independent reported that more than 4,000 positions will likely transfer to new companies because of the deals HSBC Holdings plc (NYSE:HBC) (LON:HSBA) (HKG:0005) has signed already this year.
HSBC Could Announce Dividend Increase
In addition to the cost cuts, Gulliver is also expected to announce an increased dividend. Analysts cited by Reuters say it’s possible for HSBC Holdings plc (NYSE:HBC) (LON:HSBA) (HKG:0005) to raise its dividend by 30 percent or even more this year. If it does, then that would be a very strong catalyst for the bank’s stock.
As of this writing, shares of HSBC were down .79 percent at the New York Stock Exchange.