Internship
Case Study
On
HSBC Profits rise for 2013 by Cost Cutting
Submitted by:
Aupo Shamuel D Costa
ID: 2013110004055
Program: MBA (1 year)
Batch: 15 th
Sec: B
Sub: Investment Theory
Course Code: Fin 6161
Submitted to:
MD. Khairul Alom
Lecturer of School of Business
Southeast University of Bangladesh
Q. 1 Why HSBC cope with cost cutting strategy?
Answer:
HSBC (Hong Kong and Shanghai Bank Corporation) reported 9 % rise in profit for last year, boosted by cost cuts as it restructured the business. Reported pre-tax profit was $22.6 bn, compared with $20.6 bn in 2012. The bank said the behind of cost cutting they explained some reasons the chief executive sutart Gulliver said “The group today is leaner and simpler than in 2011, with strong potential for growth.” They basically wants to ensure that HSBC branches which are in the right locations for their customers and on occasions this means that they need to close those branches where customer’s foot fall has fallen dramatically or there has been a shift in customer shopping patterns. And also raise the transaction cost from £5 to £5.50 in the name of the new fees were part of a providing “clearer and more transparent pricing.” The bank also said behind of cost cutting bank want to switching to be ‘hassle-free’ , standard U- turn on free accounts and free banking claim is ‘ridiculous’. They also said the closures branches were a result of customers using the branch network less than they used to “we are seeing a shift to customers using phone, internet and mobile devices.” For this kind of reasons the HSBC cope with cost cutting strategy.
Q.2. The Impacts of cost cutting on overall Financial Performance of HSBC (comparison with past year)?
Answer:
For the Impacts of cost cutting they have closed about 70 branches in the UK last year and more than 50 in 2011 and in 2013, 9 branches has been closed and declared with 85 closures in UK towns and cities so far this
On
HSBC Profits rise for 2013 by Cost Cutting
Submitted by:
Aupo Shamuel D Costa
ID: 2013110004055
Program: MBA (1 year)
Batch: 15 th
Sec: B
Sub: Investment Theory
Course Code: Fin 6161
Submitted to:
MD. Khairul Alom
Lecturer of School of Business
Southeast University of Bangladesh
Q. 1 Why HSBC cope with cost cutting strategy?
Answer:
HSBC (Hong Kong and Shanghai Bank Corporation) reported 9 % rise in profit for last year, boosted by cost cuts as it restructured the business. Reported pre-tax profit was $22.6 bn, compared with $20.6 bn in 2012. The bank said the behind of cost cutting they explained some reasons the chief executive sutart Gulliver said “The group today is leaner and simpler than in 2011, with strong potential for growth.” They basically wants to ensure that HSBC branches which are in the right locations for their customers and on occasions this means that they need to close those branches where customer’s foot fall has fallen dramatically or there has been a shift in customer shopping patterns. And also raise the transaction cost from £5 to £5.50 in the name of the new fees were part of a providing “clearer and more transparent pricing.” The bank also said behind of cost cutting bank want to switching to be ‘hassle-free’ , standard U- turn on free accounts and free banking claim is ‘ridiculous’. They also said the closures branches were a result of customers using the branch network less than they used to “we are seeing a shift to customers using phone, internet and mobile devices.” For this kind of reasons the HSBC cope with cost cutting strategy.
Q.2. The Impacts of cost cutting on overall Financial Performance of HSBC (comparison with past year)?
Answer:
For the Impacts of cost cutting they have closed about 70 branches in the UK last year and more than 50 in 2011 and in 2013, 9 branches has been closed and declared with 85 closures in UK towns and cities so far this