Senior HSBC bankers face double blow as school-fee subsidy cut adds to job risks: sources

Senior bankers at HSBC are facing a double blow as the lender cuts school-fee subsidies and prepares for potential job losses, according to sources. HSBC, the largest lender in Hong Kong, will no longer provide an education subsidy program for newly hired or promoted senior executives, effective immediately. Employees already in the bank's top three grades will continue to receive the benefit, which covers up to HK$300,000 (US$38,240) per year for secondary school fees and HK$220,000 for primary school fees.

A source stated that the cut is a "double blow" as senior managers like themselves see more benefit reductions while also being among the staff most at risk of job losses due to the integration of back-office teams between HSBC and Hang Seng Bank. HSBC recently completed a US$14 billion buyout of shares from subsidiary Hang Seng Bank in January and has been integrating seven back-office functions across the two lenders.

The co-CEOs for Asia and the Middle East, David Liao Yi-chien and Surendra Rosha, emphasized that the bank will continue to invest in talent and provide fair and competitive benefits. However, shareholders have shown support for the bank's cost-cutting strategy, with HSBC's shares rising more than 50% over the past year.