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Chief executive Stuart Gulliver said HSBC will stop retail banking in 20 countries


High street bank HSBC is to axe tens of thousands of jobs worldwide despite unveiling a multi-billion pound profit for the six months to June 30.

As exclusively revealed by Sky City editor Mark Kleinman, the bank will axe a total of 30,000 jobs over the next two years to save $3.5bn.

It has already shed 5,000 jobs and will axe another 25,000 by the end of 2013. It is understood most will be overseas.

News of the job losses came as HSBC announced profits were up 3.7% to £6.9bn in the six months to June 30.

Kleinman said: "HSBC is a global bank, the UK is a relatively small part of their business, and that's why when the chief executive outlines plans for thousands of job cuts, most of those will fall outside the UK business."

HSBC has around 52,000 staff in the UK, and a total of 335,000 worldwide.

Despite rise in profits, the bank warned growth across the US and Europe is likely to remain "sluggish", with concerns that new regulations may hamper growth in the UK.

The bank's chief executive Stuart Gulliver said: "The pace and quantum of regulatory reform continues to increase at the same time as the global economy appears to be losing momentum in its recovery."

David Fleming, a spokesman for the Unite trade union, said: "The worst fears of HSBC staff have finally been confirmed.

"While the bank reports strong profits, its staff face an uncertain future as the management press forward with this brutal restructuring.

"The employees being hit by these extensive cuts were in no way responsible for the banking crisis. Yet it is these staff - many of whom are low paid - who are having to pay for the bank's recovery."

HSBC is the latest bank to unveil widespread cuts to employee numbers.

Lloyds Banking Group has unveiled 15,000 job losses this year, while RBS has shed 28,000 employees since 2010.

HSBC is the first of the 'Big Four' high street banks to unveil their results this week.

Barclays, which reports on Tuesday, is expected to reveal a 24% drop in annual profits to £1.8bn, according to analysts.

Taxpayer-backed Lloyds Banking Group is set to report pre-tax profits of £1bn on Thursday, a big drop on the £1.6bn reported last year.

On Friday Royal Bank of Scotland is expected to announce profits of around £611m, 19% down on its 2010 figures.