HSBC cuts Hong Kong banker perks as employee benefits are restructured

HSBC Holdings is withdrawing a subsidy for private club memberships for some Hong Kong bankers, as the lender restructures employee benefits across HSBC Hong Kong and Hang Seng Bank.

Under the changes, mid-level bankers will lose a subsidy covering 50% of the cost of joining a members’ club in Hong Kong after December 31. The benefit was worth up to HK$200,000 (US$25,500).

New joiners at HSBC Hong Kong and Hang Seng Bank will also receive different life assurance coverage from existing employees from 2027, according to an internal memo cited by The Business Times.

Benefits to be aligned

The changes will also bring employee benefits across HSBC Hong Kong and Hang Seng Bank closer together, covering areas including mortgage benefits, medical coverage and life insurance.

The restructuring follows HSBC’s broader efforts to reduce costs while integrating Hang Seng Bank after completing its acquisition in January.

“We are focused on investing in our employees competitively,” a spokesperson for HSBC said in an emailed statement. “HSBC and Hang Seng employees in Hong Kong have access to broad learning and development opportunities and a competitive benefits package.”

Cost savings drive

Under chief executive Georges Elhedery, HSBC has been undertaking a wider restructuring programme that has included cuts to parts of its investment banking operations and changes across other businesses.

In August, the lender raised its expected total cost savings from the restructuring to US$2 billion, from an earlier target of US$1.5 billion.

The latest benefits changes follow another adjustment announced earlier this month, when HSBC ended a long-standing education benefit for new hires in Hong Kong and senior employees relocating to the city.

The previous benefit covered 95% of school fees, up to HK$220,000 a year for each child in primary school and HK$300,000 for each secondary-school child.

Employee benefits under review

Private members’ clubs are a significant employee perk in Hong Kong, where joining fees, annual charges and waiting lists can be substantial. Such clubs are commonly used for social, business and recreational activities.

The changes indicate a broader review of employee benefits as HSBC works to standardise benefits across its Hong Kong businesses and deliver targeted cost savings.