* Bank reiterates February cost-cutting plan
* HSBC apologises for dividend cut
* HSBC to report first quarter earnings on April 28
(Adds further details)
By Lawrence White
LONDON, April 24 (Reuters) - HSBC will press ahead with
plans to reallocate capital from underperforming businesses, cut
costs and strip out layers of management, despite problems
caused by the coronavirus pandemic.
Chief Executive Noel Quinn said HSBC will proceed
"wherever possible" with a transformation plan outlined in
February, but has paused most of the associated redundancies.
Europe's biggest bank announced its latest cost-cutting plan
before the coronavirus spread across Europe, leading investors
to question whether HSBC would be able to carry it out.
HSBC has said it will pause job cuts in order to avoid
disruption and leaving staff unable to find work elsewhere, but
Quinn's re-commitment to the February strategy in a filing ahead
of its annual shareholding meeting will remove some uncertainty.
It will be the first major British lender to report first
quarter earnings, on April 28, with a sharp rise in provisions
against bad loans expected.
HSBC also apologised again to shareholders for cancelling
its dividend, a move that sparked widespread outrage and a
possible lawsuit from Hong Kong retail investors, many of whom
rely on the payouts for a significant part of their income.
"We recognise that many shareholders are deeply disappointed
by the cancellation of the dividend and we profoundly regret the
financial consequences (it) will have on shareholders," HSBC
Chairman Mark Tucker said in the filing.
(Reporting by Lawrence White, Editing by Iain Withers and
Alexander Smith)