Bull Bear Report Aug 02 2010

HSBC Hiring Heavily

By shareen pathak

Having reported positive earnings results for the first half of the year, HSBC has also announced that it's bulking up its headcount across many of its business lines.

The bank is planning to add 1,000 staff members in its Personal Financial Services unit to support its growing Islamic banking unit, Amanah, and aiming to add 500 private bankers in the emerging markets of Asia, Latin America and the Middle East. It is also recruiting for 500 staff in Brazil and Mexico.

The heavy hiring is spurred on, in part, by the positive results the bank reported for the first half of 2010. According to The Wall Street Journal, its net profit doubled, from $3.35 billion a year ago to $6.76 billion for the period. In general, the bank remains optimistic on the outlook across all its business lines, including in investment banking where it registered a fall in profit.

Most of its profits were driven by growth in Asia and North America. The bank's Asia-Pacific division contributed to 23% of its profit, up from 20% in the same period last year, while the North American unit contributed 17%, up from 8% in the first half of last year.

It is unsurprising then, that most of its hiring activity is expected to take place in the Asian markets.

The bank is also looking to build its presence in India and China. In its trade finance business, the bank has been transferring bankers into China and Brazil, to support more trade between the two emerging economies. That move is along the vein of JPMorgan, who recently announced that it is hiring 100 staff members for its trade finance unit, highlighting the growing importance of that line, a sign that global trade might be returning to pre-crisis levels.

Write to Shareen Pathak




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