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| 'Big four' banks cut 189,000 jobs worldwide in five years | 'Big four' banks cut 189,000 jobs worldwide in five years |
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| By the end of this year, Britain's four biggest banks will have axed 189,000 jobs around the world in the five years since the financial crisis broke, according to new calculations. | By the end of this year, Britain's four biggest banks will have axed 189,000 jobs around the world in the five years since the financial crisis broke, according to new calculations. |
| The figures, compiled by Bloomberg, show that Royal Bank of Scotland, Lloyds Banking Group, Barclays and HSBC will have cut their global headcount by 24% to a nine-year low of 606,000, compared with their pre-crisis peak of 795,000 in 2008. | The figures, compiled by Bloomberg, show that Royal Bank of Scotland, Lloyds Banking Group, Barclays and HSBC will have cut their global headcount by 24% to a nine-year low of 606,000, compared with their pre-crisis peak of 795,000 in 2008. |
| Royal Bank of Scotland Holdings has axed 78,000 jobs since its £45bn taxpayer bailout in 2008. This includes 4,000 roles in its UK high-street banking business. Sir Philip Hampton, chairman of the bank, which is now 81% owned by the taxpayer, told shareholders this month that further job cuts could not be ruled out. | Royal Bank of Scotland Holdings has axed 78,000 jobs since its £45bn taxpayer bailout in 2008. This includes 4,000 roles in its UK high-street banking business. Sir Philip Hampton, chairman of the bank, which is now 81% owned by the taxpayer, told shareholders this month that further job cuts could not be ruled out. |
| An RBS spokeswoman said the 78,000 job losses included 39,000 staff who had worked for Fortis and Santander when the three banks joined forces to launch a takeover of Dutch rival ABN Amro in 2007. This is now seen as one of the most disastrous acquisitions in business history, squeezing RBS's capital buffers to tiny margins and exposing the Edinburgh-based bank to rotten US sub-prime loans. | An RBS spokeswoman said the 78,000 job losses included 39,000 staff who had worked for Fortis and Santander when the three banks joined forces to launch a takeover of Dutch rival ABN Amro in 2007. This is now seen as one of the most disastrous acquisitions in business history, squeezing RBS's capital buffers to tiny margins and exposing the Edinburgh-based bank to rotten US sub-prime loans. |
| HSBC, Europe's largest bank, is down to 254,000 staff, compared with 313,000 in 2008. The bank infuriated unions last month when it described 3,166 job losses as "demising" roles. HSBC chief executive Stuart Gulliver plans to slim the bank further, cutting staff to 240,000 by the end of 2016 to trim costs and boost shareholder dividends. | HSBC, Europe's largest bank, is down to 254,000 staff, compared with 313,000 in 2008. The bank infuriated unions last month when it described 3,166 job losses as "demising" roles. HSBC chief executive Stuart Gulliver plans to slim the bank further, cutting staff to 240,000 by the end of 2016 to trim costs and boost shareholder dividends. |
| An HSBC spokeswoman said the bank had made a net reduction of 1,100 jobs in the UK, once new positions were taken into account. | An HSBC spokeswoman said the bank had made a net reduction of 1,100 jobs in the UK, once new positions were taken into account. |
| Lloyds, which received a £20.5bn bailout in 2008, will have cut 31,000 jobs by the end of this year, including 2,340 in 2013. The bank, now 39% owned by the British taxpayer, announced 850 job losses this month to cut costs, but was unable to give figures on how many of the 31,000 job losses were in the UK. | Lloyds, which received a £20.5bn bailout in 2008, will have cut 31,000 jobs by the end of this year, including 2,340 in 2013. The bank, now 39% owned by the British taxpayer, announced 850 job losses this month to cut costs, but was unable to give figures on how many of the 31,000 job losses were in the UK. |
| Barclays chief executive Antony Jenkins, appointed to clean up the bank after the Libor-rate rigging scandal, has said it may axe 40,000 roles in the coming years. Barclays will have cut 20,800 jobs by the end of this year since the start of the crisis. This includes about 5,500 jobs lost in the UK between 2008 and 2012. | Barclays chief executive Antony Jenkins, appointed to clean up the bank after the Libor-rate rigging scandal, has said it may axe 40,000 roles in the coming years. Barclays will have cut 20,800 jobs by the end of this year since the start of the crisis. This includes about 5,500 jobs lost in the UK between 2008 and 2012. |
| The figures come after three of the four banks reported sharply improved profits. Last month, Lloyds posted first quarter profits of £2bn, up from £288m at the same time a year ago. HSBC this month said it made a quarterly pre-tax profit of $8.4bn, almost double the $4.3bn it reported at the same time last year. RBS swung to a £826m profit after a £1.4bn loss last time. Barclays last month reported adjusted first quarter profits had fallen 25% to £1.8bn, partly due to the cost of the bank's restructuring programme. | The figures come after three of the four banks reported sharply improved profits. Last month, Lloyds posted first quarter profits of £2bn, up from £288m at the same time a year ago. HSBC this month said it made a quarterly pre-tax profit of $8.4bn, almost double the $4.3bn it reported at the same time last year. RBS swung to a £826m profit after a £1.4bn loss last time. Barclays last month reported adjusted first quarter profits had fallen 25% to £1.8bn, partly due to the cost of the bank's restructuring programme. |
| Andrew Case of the Unite trade union described the job cuts as unjustified. He said: "The amount of jobs we are seeing disappear from the banks is concerning and at the moment we would be foolish to be complacent that we have seen the last of it. We expect all banks to do everything they can to avoid job losses and we want, we expect, more from banks that are owned by the public. The last thing the public want, I am sure, is for banks to be shedding jobs and for people to be collecting benefits that the taxpayer pays for." | Andrew Case of the Unite trade union described the job cuts as unjustified. He said: "The amount of jobs we are seeing disappear from the banks is concerning and at the moment we would be foolish to be complacent that we have seen the last of it. We expect all banks to do everything they can to avoid job losses and we want, we expect, more from banks that are owned by the public. The last thing the public want, I am sure, is for banks to be shedding jobs and for people to be collecting benefits that the taxpayer pays for." |
| Case said it was a myth that all bankers were millionaires. "The vast majority of staff that work for banks are quite modestly paid, some quite low paid, just like other working people." | Case said it was a myth that all bankers were millionaires. "The vast majority of staff that work for banks are quite modestly paid, some quite low paid, just like other working people." |
| Giorgio Questa, a visiting professor at Cass Business School, said one reason for the job losses was the shift in investment banking activity to "quasi banks", such as hedge funds, in the wake of government reforms. | Giorgio Questa, a visiting professor at Cass Business School, said one reason for the job losses was the shift in investment banking activity to "quasi banks", such as hedge funds, in the wake of government reforms. |
| The government had put in place "sub-optimal reforms", he said, following a report by Sir John Vickers that recommended ringfencing high street banks from their "casino" investment banking arms. | The government had put in place "sub-optimal reforms", he said, following a report by Sir John Vickers that recommended ringfencing high street banks from their "casino" investment banking arms. |
| "Bank regulation, which has not followed the ideas of the Vickers report, which was the best way of looking at things, is sort of stifling the activity of banks in a number of sectors," he said. "It means that a lot of activities [now] not done by banks are being done by quasi banks." | "Bank regulation, which has not followed the ideas of the Vickers report, which was the best way of looking at things, is sort of stifling the activity of banks in a number of sectors," he said. "It means that a lot of activities [now] not done by banks are being done by quasi banks." |
| City analysts expect job losses to keep on coming, as technology replaces jobs that people once did and the banks attempt to trim their wage bills to meet profit targets promised to shareholders. | City analysts expect job losses to keep on coming, as technology replaces jobs that people once did and the banks attempt to trim their wage bills to meet profit targets promised to shareholders. |
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