Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Friday, Mar 24, 2023

Hong Kong HSBC plan to scrap private offices has bankers hot under the collar

Hong Kong HSBC plan to scrap private offices has bankers hot under the collar

Senior investment bankers at HSBC Holdings Plc in Hong Kong could lose their private offices as the firm moves toward open-plan desks for the financial hub, causing angst among some executives who’ve complained about potential confidentiality risks.
The investment-banking division isn’t being singled out and the plan is in line with a broader move across the company, people familiar with the matter said, asking not to be identified discussing private information. Still, some bankers have warned that scrapping private offices may raise issues around privacy as senior executives often discuss sensitive information with clients.

The plan follows similar moves at HSBC headquarters in London two years ago when the lender scrapped the executive floor of its Canary Wharf base, leaving Chief Executive Officer Noel Quinn and other senior managers hot-desking. Globally, HSBC is looking to cut office space by 40 percent compared with the pre-pandemic levels.

HSBC’s main offices in Hong Kong are being renovated and once that’s completed, some senior investment bankers could lose their private offices, according to one of the people. There will still be private rooms for bankers to get together to discuss sensitive information, the person said.

An HSBC spokesperson said the bank constantly evaluates its global real estate footprint “to optimize space where appropriate, to increase flexibility and choice for our people.”

The potential loss of private offices comes after a difficult year for deal-making, which saw the overall bonus pool shrink to the lowest since 2020, led by a drop for the global banking and markets division.

Costs have been a particularly sore point for the bank, and major shareholder Ping An Insurance Group Co. last year urged HSBC to deepen cost cuts. Investors need “reassurance of cost discipline going forward” after HSBC missed spending estimates in the fourth quarter, Morgan Stanley analysts said in a Feb. 21 note.

The bank’s adjusted operating expenses rose 2 percent in the fourth quarter, in part due to higher bonuses, and it flagged costs will rise about 3 percent this year.

According to the bank’s strategic report, since 2019 HSBC has reduced its office real estate footprint by 37 percent, branches by 21 percent and operations headcount by about 11 percent.

The lender is also looking for a new global headquarters that are around half the size of its current space in Canary Wharf, a stark illustration of how pandemic-driven changes to working practices are reshaping London’s office landscape.
Newsletter

Related Articles

Hong Kong News
Close
0:00
0:00
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Goldman Sachs cuts outlook for European bank debt over Credit Suisse crisis
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
The US government has charged Chinese businessman Guo Wengui with leading a $1 billion fraud scheme that cheated thousands of followers out of their money.
Credit Suisse to borrow $54 billion from Swiss central bank
The BBC problem about China
Russian Hackers Preparing New Cyber Assault Against Ukraine
"Will Fly Wherever International Law Allows": US Warns Russia After Drone Incident
If this was in Tehran, Moscow or Hong Kong
Announcing GPT-4
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
China is calling out the US, UK, and Australia on their submarine pact, claiming they are going further down a dangerous road
A brief banking situation report
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
'No relation to the American SVB': India's SVC Bank acts to calm depositors amid brand name confusion.
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Silicon Valley Bank exec was Lehman Brothers CFO
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
Saudi Arabia has announced a major breakthrough in diplomacy with Iran after two years of intense talks
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
Banking regulators close SVB, the largest bank failure since the financial crisis
Silicon Valley Bank: Struggles Threaten Tech Startup Ecosystem"
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
2 universities in Hong Kong embrace use of ChatGPT, other AI tools
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
Missing Chinese banker was working to set up Singapore family office
Hong Kong ditches Covid mask mandate after 945 days
Xi Jinping and His Wife Meet with Cambodian King Norodom Sihamoni and Queen Mother Norodom Monineath Sihanouk
How do stolen goods end up on Amazon, eBay and Facebook Marketplace?
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Hello. Here is our news digest from London.
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
When it comes to Tesla vs Lamborghini, an empty vessel makes more noise
European MP Clare Daly condemns US attack on Nord Stream
Former U.S. President Carter will spend his remaining time at home and receive hospice care instead of medication
North Korea test-fires an intercontinental ballistic missile into the Sea of Japan west of Hokkaido
×