Speculation mounting HSBC to cut 10,000 jobs

Disappointing figures are predicted from the London-listed lender for the six months to 30 June and there has been much speculation about planned job losses after a number of international banks announced cuts in recent weeks.

Goldman Sachs, Credit Suisse and UBS have all said they are reducing numbers to cope with the drop in income from the financial markets caused by investor apprehension over the sovereign debt crises.

UK banks are also reeling from the payment protection insurance (PPI) mis-selling scandal, which has seen them put billions of pounds aside for compensation.

HSBC is thought to be planning to cut at least 10,000 from its headcount. The group yesterday declined to comment on the reports.

HSBC starts the results season for the UK's big four high street banks, which is expected to provide a snapshot of a gruelling start to 2011.

Barclays, Lloyds Banking Group and Royal Bank of Scotland are also expected to reveal a drop in profits in their interim updates this week.

HSBC is anticipated to report pre-tax profits of $10.9 billion (6.7bn) for the period, down from $11.1bn. The main focus is likely to be on progress with cost-cutting after boss Stuart Gulliver unveiled a savings programme earlier this year.

Barclays, which reports tomorrow, is expected to reveal a 24 per cent drop in profits to 1.8bn, according to broker Seymour Pierce.

Lloyds is expected to report pre-tax profits of 1bn on Thursday, a steep reduction on the 1.6bn reported a year earlier.

RBS closes the week with its results on Friday, which Seymour Pierce expects to reveal 611 million in reported profits, down 19 per cent on the previous year.

Shares in Lloyds and RBS have plunged 30 per cent and 17 per cent respectively in the past six months, while Barclays' shares have plummeted 26 per cent and HSBC has lost 14 per cent.