HSBC logo in Hong Kong
HSBC logo in Hong Kong

Shares in British banks were mixed on the FTSE 100 in morning trading after HSBC published the results of a strategic review.

The bank said it would aim to cut $3.5 billion in costs by scaling back its wealth management and retail banking businesses. The group also appointed Richard Bennett as its new group managing director.

In addition a report in City A.M. quoted Martin Wheatley, the Chief Executive of the Hong Kong Securities and Futures Commission, as saying that Hong Kong may not be willing to see HSBC relocate there as it represents a large risk.

The news came as a blow to speculation that HSBC will relocate away from the United Kingdom, whose bank levy was described as a "location tax" by the group's Chairman, Douglas Flint.

By 10:05 shares in Lloyds Banking Group were up 0.04 per cent to54.60 pence per share and Barclays shares rose 0.38 per cent to 279.00 pence per share.

However RBS shares declined 0.16 per cent to 42.49 pence per share and HSBC shares fell 0.98 per cent to 649.80 pence per share.

Overall the FTSE 100 was down 0.01 per cent to 6,018.09.