The London-headquartered company, which is largely focused in Asia, has made the decision to close its institutional cash equities, equity research and equity capital markets activities as part of a drive to eliminate loss-making sectors of the business.
This has resulted in 200 jobs being cut across the group’s 70 markets.
“On track”
Last November the firm announced it was planning to make $400m in annual savings, of which the equities division is expected to deliver $100m.
The group said it is “on track” to reach its target.
It also announced the loss of 2,000 jobs across its retail sector following the shift to digital, with a further 2,000 job cuts expected throughout the year, and the closure of as many as 100 branches.
Chief executive Peter Sands said the group’s latest move signals an effort to deliver returns for shareholders.
“We are continuing to take significant action on costs by exiting or reconfiguring underperforming businesses, and by increasing the efficiency of our core businesses,” he said.
The group will continue to develop its capabilities in equity derivatives and sectors of research to support its core businesses, and will continue to offer advice to its clients on equity financing.
This news comes after the firm sold or closed its consumer financing businesses in China, Hong Kong, Germany and Korea last year. It was also announced in October that thousands of the firm’s UAE clients were to have their accounts closed.
Mike Rees, deputy chief executive said that while the closure has “sadly resulted” in a number of colleagues leaving the bank, a “transition team” will be on hand to manage the interim period.
