HSBC is reportedly slowing down hiring and encouraging staff to rein in some expenses as Europe's biggest bank looks to cut costs.

The lender has not replaced some staff who have quit or resigned in recent months, according to Bloomberg News.

It was also reported that some of HSBC's divisions have been told to freeze hiring entirely, although the pause is not designed to affect clientfacing jobs.

Investment bankers within the group are said to have been encouraged to set up at least three client meetings each day in a bid to reduce work travel costs.

"Servicing our clients is our priority and ensuring we have the right people in the right places," an HSBC spokesperson told City A.M. "We are working smarter and more efficiently as we leverage technology and continue to manage costs."

The news comes as central banks across the world are expected to cut interest rates in the coming months, presenting lenders with the prospect of tighter margins and lower profits.

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