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HSBC to close a further 27 branches in 2020 in cost-cutting move

Edmund Heaphy
Finance and news reporter
A branch of HSBC in Holborn in London, England (David Cliff/NurPhoto via Getty Images)

HSBC (HSBA.L) on Tuesday said that it would close a further 27 of its UK branches, just a week after it unveiled a sweeping cost-cutting plan.

The London-based banking giant said last week that it would move to trim annual costs by $4.5bn (£3.4bn) over the next two years, and that it would axe 35,000 jobs globally.

Staff in 10 of the branches could face redundancies as part of the branch closures, putting around 50 jobs at risk.

On Tuesday, it pointed to a 33% decline in the number of customers using its high street branches in the past five years.

The decision to close 27 branches, it said, reflects “the long-term change in the way customers are banking alongside the bank’s need to ensure a sustainable branch network for the future.”

The bank will also invest around £34m ($44m) in new technology and refurbishments at its branches this year.

Five of HSBC’s branches were closed in 2019, and more than 100 were closed in 2017.

READ MORE: HSBC to axe 35,000 jobs as profit slumps

In addition to trimming tens of thousands of jobs, the bank’s recently announced restructuring plans include the shrinking of its European and US investment banking operations, the merging of its private banking, retail banking, and wealth management divisions — as well as a consolidation of back-office functions.

Some 90% of HSBC customers now complete their transactions using its phone, internet, and mobile banking services, while 99% of cash withdrawals are made at an ATM, the bank said.

“Retaining a sustainable branch network is extremely important to us and we need to ensure it is fit for the future,” said Stuart Haire, the head HSBC UK’s retail banking and wealth management division.

“But, the way our customers bank with us has changed significantly over the last five to ten years, and that change is something we cannot ignore.”

Here is the full list of HSBC branch closures:

Closing on 3 July 2020:

  • Bristol Bedminster

  • Leigh-on-Sea

  • London Park Royal

  • Chingford

  • Swindon Old Town

  • Kensington High Street

Closing on 10 July 2020:

  • Blaby

  • Peterlee

  • Leigh Bradshawgate

  • Chard

  • Wallasey

  • Royston

  • Pudsey

Closing on 31 July 2020:

  • Croydon Wellesley Road

  • Saffron Walden

  • Tiverton

  • Ely

  • Pembroke

Closing later in 2020:

  • London Greenwich

  • London Regent Street

  • Redhill

  • Thetford

  • Sheffield Broomhill

  • Bourne

  • Cheltenham Bath Road

  • Coventry Corporation Street

  • Heswell

  • Branch refurbishments:

  • East Ham

  • Croydon North End

  • Ealing Broadway

  • Stratford Upon Avon

  • Hammersmith

  • Carmarthen

  • Lewisham

  • Cheltenham Promenade

  • Blackburn

  • Wembley

  • Bristol Kingswood

  • Wigan

  • Corby

  • 122 Finchley Road

  • Alton

  • Cardiff Rhyd y Penau

  • Castleford

  • Hinckley

  • Lowestoft

  • Lymington

  • Ormskirk

  • Ramsgate

  • Saxmundham

  • Welshpool

  • Witney

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