Tight times put 10,000 HSBC jobs on the line

The banking giant is expected to reveal disappointing figures for the six months to June 30.

There has been speculation about planned job losses, and last night it was reported that HSBC is to confirm it is cutting at least 10,000 jobs. An HSBC spokesman declined to comment.

The bank starts the results season, which is expected to provide a snapshot of a gruelling start to 2011. Barclays, Lloyds Banking Group and Royal Bank of Scotland are all also expected to reveal a drop in profits in their interim updates over the coming week.

HSBC is anticipated to report pre-tax profits of US$10.9bn (£6.7 bn) for the period, down from US$11.1 bn (£7bn).

The main focus is likely to be on progress with cost-cutting after chief executive Stuart Gulliver unveiled a multibillion-dollar savings programme earlier this year.

The payment protection insurance (PPI) mis-selling scandal; planned ringfencing of retail banking operations as proposed by the Independent Commission on Banking; and a volatile global economic climate have all affected the accounts of the four main lenders.

Taxpayer-backed Lloyds and RBS have seen their shares plunge 30 per cent and 17 per cent respectively in the last six months alone, while Barclays’ shares have plummeted 26 per cent and HSBC has lost 14 per cent.

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

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

Royal Bank of Scotland closes the week with its results on Friday, which are expected to reveal £611m in reported profits, down 19 per cent on the previous year, Seymour Pierce said.