HSBC is to accelerate plans for a major shake-up after reporting a worse than expected 18% plunge in pre-tax profits.
Interim chief executive Noel Quinn named the bank's UK business among its poorest-performing elements, weeks after reports that up to 10,000 jobs could be cut. It is thought to have around 4000 staff in Scotland.
Profit before tax for the third quarter fell to $4.8 billion (£3.7 billion) in the third quarter of the year. This was significantly below the $5.3 billion (£4.1 billion) analysts had forecast, according to an average compiled by the bank.
Quinn said that "parts of the business, especially in Asia, held up well in a challenging environment". But he added: "In some parts, performance was not acceptable, principally business activities within continental Europe, the non-ring-fenced bank in the UK, and the US".
The boss, who took over in August after his predecessor John Flint was ousted by the board, said previous plans "are no longer sufficient" to improve these areas as revenue growth is expected to soften.
Revenue reduced by 3% to $13.4 billion (£10.4 billion) over the period, the bank said in a statement to the Hong Kong and London Stock Exchanges. "We are therefore accelerating plans to remodel them, and move capital into higher growth and return opportunities," Quinn said.
Earlier this year, the Financial Times reported that up to 10,000 jobs might be at risk at the high street bank as Mr Quinn plans to rein in costs. HSBC employs around 238,000 people.
However, the bank found a silver lining in Asia where many were concerned about the effects that ongoing protests in Hong Kong could have on the business. Yet profit before tax rose 4% in Asia to 4.7 billion dollars (£3.7 billion) in the third quarter of 2019 as the Hong Kong branch remained "resilient".
Despite this, the bank said it was putting aside $400 million (£312 million) "to reflect the economic outlook in Hong Kong".
.jpg?w=600)
