UPDATE: HSBC To Slash 30,000 Jobs As First-Half Revenue Stagnates

--HSBC to cut 25,000 jobs by end of 2013, on top of 5,000 already identified

--First-half revenue flat at $35.7 billion

--Net profit rose 35% on lower tax charge

(Adds CFO comment and further details.)

By Margot Patrick  Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--HSBC Holdings PLC (HBC) Monday said it is slashing around 30,000 jobs to cut costs and revamp its business, as the banking giant follows through on a May plan to withdraw from some countries and refocus its operations on high-growth markets.

On top of 5,000 jobs already under the axe in the U.S., U.K., France, Latin America and Middle East, around 25,000 further roles will be cut between now and 2013, Group Finance Director Iain Mackay told reporters. He said the bank is still hiring in some countries, though, and that the net headcount reduction could be much smaller.

HSBC made the announcement as it reported flat first-half revenue of $35.7 billion, with weakness in Europe and its Global Banking & Markets division offsetting double-digit percentage revenue growth in Hong Kong, the rest of Asia Pacific and Latin America.

The group revenue figure, comparing with around $35.5 billion in the first half of 2010, was better than analyst expectations of $34.5 billion.

Net profit attributable to ordinary shareholders across the bank rose 35%, to $8.9 billion from $6.6 billion, mainly from the effect of previously flagged lower tax charges.

HSBC shares at 0955 GMT were up 3.8% at 617.3 pence, after having been trading up by about 1.5% just before the announcement. European and Asian stock indexes rose Monday after the U.S. late Sunday announced a last-minute agreement to raise its debt ceiling, averting a possible default.

McKay said the agreement is welcome and will hopefully foster more stability in financial markets.

HSBC Chief Executive Stuart Gulliver in May presented a strategic plan for the bank to shave up to $3.5 billion from its annual cost base by 2013, exit retail banking in some countries and tap a growing base of wealthy consumers in target markets.

So far, the bank has said it will stop offering retail banking in Russia and Poland, and has started reorganizing its operations in several other countries.

The bank late Sunday said it was selling 195 retail-banking branches in upstate New York to First Niagara Financial Group Inc. (FNFG) for $1 billion in cash, a move Gulliver had said was under consideration in May.

-By Margot Patrick, Dow Jones Newswires; +44 (0)20 7842 9451; margot.patrick@dowjones.com

via online.wsj.com