BEIRUT: HSBC has embarked on a major global restructuring program that will include its operations in Lebanon, a banking source told The Daily Star Friday. “HSBC branches in Lebanon will eventually witness some restructuring as part of the plan set by the administration in London,” the source said.

This restructuring may include laying off some staff and even closing some branches.

Europe’s largest bank announced in August of this year that it intends to lay off 30,000 employees over the next 10 years. But HSBC Lebanon chief executive officer Francois Pascal de-Maricourt assured The Daily Star in an interview over the telephone that he was quite satisfied by the performance of his bank in Lebanon, stressing that HSBC has been one the first banks to operate in Lebanon, opening over 50 years ago.

However, Maricourt declined to comment on reports that HSBC plan to lay off some staff or close down some of the branches.

“I am not going to comment on these reports. But I can say that we are quite happy with our operations in Lebanon. We made a net profit of $21 million at the end of 2010 and the first six months of this year we achieved a double-digit growth in gross revenues,” Maricourt said.

He repeated that HSBC is committed to Lebanon and “we have been in the country for 55 years and we intend to stay here.”

“We are reviewing our operations in Lebanon but it does not mean at all that we are dropping our operations,” the banker said.

HSBC has six branches in Lebanon in addition to the head office located in Ain al-Mreisseh.

But despite Maricourt’s refusal to confirm or deny plans to lay off some staff or even shut down two to three branches, the source insisted that sooner or later HSBC operations in Lebanon will be affected by the restructuring program.

“No official information has been issued yet on Lebanon. Although profitable, its business in Lebanon constitutes a tiny share of worldwide profits for the bank. So the latter might shut it down and focus instead on more profitable markets and services,” the source said adding that HSBC has decided to shut down its commercial business in Russia for about $500 million due to governmental issues.

In the U.S. “the CEO realized the competitive environment and so decided to put an end to its commercial business there,” the source said.

He admitted, however, that HSBC in Lebanon achieved good results in the mid year that exceeded all expectations.