HSBC Will Lay off 35 Thousand Of Its Workers

HSBC, which has been lagging behind its competitors in the sector for a long time, announced that it will dispose of its $ 100 billion assets as a new strategy to reduce the size of investment banking and revise its activities in the USA and Europe, after announcing that its profit fell 33 percent in 2019. According to analysts, HSBC is struggling to be smaller and more competitive while trying to overcome difficulties such as slow growth in its main markets, Covid-19 outbreak, Brexit and low-interest rates of the central bank. Equity profitability (RoTE), the key profitability indicator of the bank, is expected to be in the range of 10-12 percent in 2022. HSBC's RoTE had dropped from 8.6 percent in 2018 to 8.4 percent last year. In addition, HSBC announced that the ongoing Covid-19 outbreak seriously affected its employees and customers, and in the long run, the virus outbreak could lower bank turnover and increase in bad loans due to disruptions in supply chains.