HSBC announces 'voluntary' early retirement scheme

HSBC has launched a “voluntary” early retirement scheme for its workers, following a decline in profit before tax registered in November 2015 when compared to the same period in 2014.

The modest decline was a result of higher costs and a lower contribution from the life insurance business, HSBC said.

HSBC has now approved a plan to deliver sustainable cost savings, mainly through an early retirement scheme for employees.

“The estimated cost of this one-off expenditure, as the programme is voluntary, will depend on the number of applications received. The programme will reduce profitability in the current financial year but will support an increased level of profitability and efficiency in future years,” the bank said.

HSBC said it was focusing on improving its productivity and cost effectiveness by continuing to streamline its operations while investing in areas of growth and in compliance.

“Despite the challenging operating environment mainly due to the record low interest rates and modest economic growth in the eurozone, the Bank is confident in its ability to grow its business in Malta and support the local economy whilst creating value for its shareholders. The Bank’s priorities remain those of improving the service it provides to customers, managing costs, and operating to the highest global standards of compliance.”

HSBC added it was committed to maintaining a dialogue on this initiative with all stakeholders, including the unions, in the interest of its shareholders, customers, employees and the community we serve.