HSBC to pare down Sarawak business in May
KUALA LUMPUR: HSBC Bank Malaysia Bhd is winding down its commercial banking business in Sarawak effective May 1 next year.
The move was taken following the bank's wide-ranging review of its Malaysian businesses, which began in May 2011.
In reply to a query from Business Times, an HSBC Malaysia spokesperson disclosed that a number of commercial banking roles are affected by this decision and the bank will "redeploy as many impacted employees as possible".
"HSBC has been systematically putting all its businesses through strategic assessments since May 2011, and following a wide-ranging review of Malaysia, we are now winding down our commercial banking business in Sarawak while continuing to remain active in retail banking and wealth management through our five branches in the state."
The spokesperson added that all of its businesses in Malaysia were assessed, including retail banking and wealth management and the bank had considered a number of factors but "unable to provide further details".
The HSBC official added that despite the decision, Malaysia remains a priority growth market for thebank, and the bank will continue to invest in its people, network and businesses.
HSBC Malaysia reported a 13 per cent decrease in pre-tax profit to RM381 million in the first quarter of this year.
The decline was attributed mainly to an increase in loan and financing impairment charges and a decrease in operating income.
But The bank said the decline was partially offset by lower operating expenses.
Net profit for the first quarter was RM283.91 million, compared with RM326.01 million in the same period the year before.
The bank's revenue also decreased to RM1.03 billion in the first quarter from RM1.06 billion in the previous corresponding quarter.
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