HSBC signals end to UK branch closure programme - by shutting another 62 branches

HSBC is to close a further 62 branches in the UK leading to the loss of 180 jobs, the bank confirmed on Tuesday (24 January).

The latest closures mark the end of HSBC's branch closure programme, which the bank triggered in the second quarter of 2015 in a bid to optimise its portfolio and reduce costs. A spokesperson said HSBC would attempt to redeploy staff affected by the cuts and that no further branch closures were in the pipeline thereafter.

Under the programme, around 340 branches have been closed, reducing the size of HSBC's network by a third. It would imply that by the fourth quarter of 2017, HSBC would have 625 branches in operation.

Furthermore, HSBC, which cut 800 IT staff in 2016, has already announced 200 additional redundancies in the same department.

The bank is currently pumping more than $1bn into its digital channels, claiming that branch visits by its customers are on the decline, having dropped by 40% over the last five years.

Speaking last week at the 2017 World Economic Forum in Davos, HSBC chief executive Stuart Gulliver said the bank faces some tough decisions in the run-up to Brexit which would have implications for its UK and investment banking businesses.

Gulliver said a fifth of HSBC's trading desk revenue takings could potentially be moved elsewhere in Europe, depending what sort of deal is reached between Brussels and London post Brexit.

The bank is expected to reveal its latest financials to the London Stock Exchange on 21 February, with up to a 100 senior banking jobs thought to be heading for the chopping block.