HSBC announces €14.7 million early retirement scheme

HSBC Bank Malta has announced it has approved a plan for cost savings with an early retirement scheme for employees after reporting higher operating costs and a decline in profitability.

“This scheme is one of a number of initiatives aimed at improving the Bank’s productivity and cost effectiveness, while streamlining its operations and investing in areas of growth and in compliance,” the bank said in a company announcement.

Following a comprehensive review of the applications received for voluntary retirement the Bank intends to accept around 130 applications.

The estimated cost of this one-off expenditure is approximately €14.7 million which will enable the bank to reduce annual operating costs by approximately €4.4 million.

The entire cost for the voluntary retirements will be provided for in the financial year ended 31 December 2015 and is expected to result in a one-time reduction in the bank’s profitability for that financial year.

However, the cost reductions are expected to enable the Bank to achieve a higher level of profitability and efficiency in future years.

“The bank remains confident in its ability to grow its business in Malta and support the local economy and its customers, while creating value for its shareholders,” HSBC said.