HSBC announces voluntary redundancies, closure of branches

HSBC Malta has announced that, in line with the HSBC Group's drive to improve its organisational effectiveness and against the background of difficult market conditions, it will be closing various branches across the island.

By next February 15, HSBC will close down branches in Msida, Santa Venera, Naxxar and Attard. Branches in Manwel Dimech Street in Sliema and in Luqa will close down on March 15. As of February 15, the Gozo-based agencies in Nadur and Xaghra will also offer reduced service by appointment. The HSBC branch on Campus at University will also run on reduced service starting from June 30.

Accounts held in these branches will be transferred to the nearest branches.

The bank said it was committed to ensure that customers will still be able to carry out transactions via ATMs and deposit machines which will remain in place even where branches will close down, while in some cases new ATMs and deposit machines will be installed in the locations previously used as branches or agencies. Customers affected by these changes will be notified in the coming weeks by means of a letter sent to their household or business.

"This restructuring will not involve staff compulsory redundancies, but through consultation with the Malta banking employees union the employees may apply for the voluntary redundancy and early voluntary retirement schemes currently on offer," HSBC said.

HSBC has already said it expects 2012 to be a more difficult year due to increasing pressures on revenue and capital.

Part of this strategy will include the phasing out of six branches, and a reduced service proposition at one branch and two agencies over a period of the first six months of 2012.

HSBC said it will continue to progress the €11 million project investing in upgrading the rest of the branch network and to further improve the automated delivery channels.

Over the past year and a half, HSBC has refurbished and re-opened 10 branches in Buġibba, Ħamrun, Swieqi, Paola, Valletta Premier Centre, Żejtun, Mosta, Zurrieq, San Gwann and Birkirkara. The bank has announced also that it is installing next-generation ATMs across its network in Malta and Gozo for faster self-service transactions - an investment of more than €3 million in this new technology.

Over the past year, the bank has seen a 14% reduction in teller activity which reflects a rapid change in customer behaviour.

"Given the increasingly challenging economic and market conditions in Europe and in order to ensure the bank maintains current levels of performance in the medium term, the board has recently approved a plan to deliver additional cost savings by the end of 2013," said Alan Richards, HSBC CEO.

"A key initiative is the further optimisation of the branch network footprint. This in part reflects changing customer behaviour and the increasing popularity and convenience of HSBC's automated services."

"Malta is an important market for HSBC and while closing a branch or reducing the range of services is not popular, the decisions are only taken after very careful consideration of customer activity, demographics and proximity to other branches. Whilst we will continue to provide automated services in all current locations, we will in the new year phase out six branches and reduce service at one further branch and two agencies. At the same time we remain committed to an ongoing €11 million investment programme to refurbish and upgrade key branches and automated facilities. Needless to say, we will do all we can to minimise any impact on customers during the transition period," he said.