Boom and bust for bank jobs

● Expansion outlined as the Bank of Scotland axes Dundee contact centre

Banking giant HSBC has unveiled plans to create 500 jobs across Scotland amid a “significant expansion” of its operations, taking its headcount north of the Border to 4,500.

The news came as it emerged Bank of Scotland was cutting some 250 posts with the closure of a contact centre operation in Dundee.

First Minister Nicola Sturgeon said the HSBC jobs boost was “fantastic news for the economy”.

Banking giant HSBC yesterday unveiled plans to create 500 jobs amid a “significant expansion” of its operations in Scotland.

The move by the bank, which said it marked its third expansion programme in the past three years, will take its headcount north of the Border to 4,500.

However, the news came as it emerged Bank of Scotland was cutting some 250 posts with the closure of a contact centre operation in Dundee. The lender’s parent, Lloyds Banking Group, said its West Marketgait centre in the city would be closing in December.

HSBC’S recruitment drive will add roles at its global risk function, established in Edinburgh in 2015, and will also expand its “centre of excellence” for customer contact in Hamilton. A range of other business functions across Scotland are included in its plans.

First Minister Nicola Sturgeon, who visited the lender’s global risk operations in Edinburgh, said: “HSBC’S expansion with the creation of 500 new jobs across Scotland is fantastic news for the economy. This is testament to our skills and expertise and builds on HSBC’S significant business presence here.

“Scotland remains open for business and this announcement further demonstrates our position as a prime location for investment and growth.”

Alison Mcgregor, chief executive of HSBC in Scotland, said: “The successful establishment of our global risk function demonstrates that Scotland has the talent we need and HSBC is a place that talented people want to work.

“This is our third year of significant expansion in Scotland. The new roles announced today and the launch of our largest-ever SME fund for Scottish businesses are part of our commitment to support the growth of the Scottish economy.”

The jobs boost comes days after HSBC’S UK chief executive, Ian Stuart, said the group could keep more jobs in Britain depending on whether the Government pursues a hard or soft Brexit.

HSBC, which currently has about 43,000 employees in the UK, revealed in January it was planning to move “activities covered specifically by European financial regulation” to the EU, resulting in about 1,000 jobs being shifted to the Continent.

But Stuart said: “Depending on a hard or soft Brexit, that number might be slightly less than that, so it’s going to be updated all the time.”

Confirming the Dundee restructuring, a spokesman for Lloyds said: “As we continue to adapt to the changing needs of customers and ensure we remain as efficient as possible we are developing our business with a focus on larger centres of excellence.

“As a result of this, we have announced that, from 8 December, we will no longer undertake contact centre work from West Marketgait. We will provide ongoing support for all colleagues affected by today’s announcement.”