[ by Melanie Gretchen ]

RBS is going into 'Save' mode overdrive.  The U.K. Government-owned British bank, announced it will cut 1,400 jobs as part of its effort to save $3 billion.

Notwithstanding its Q1 net profit of $600 million - vs. a £1.5 billion ($2.3 billion) loss one year earlier - the bank intends to execute layoffs throughout its local retail operations and so-called back-office functions, as it continues to press toward its 2014 goal of privatization from the government.  The new cuts are on top of the more than 30,000 jobs lost during the financial crisis, along with the bank's effort to shed assets and focus on profitable operations.  These new cuts are expected to take place over the next 2 years.

Across the Industry. Over at HSBC, as many as 14,000 people will have to find new jobs as the firm tries to save as much as $3 billion by 2016.  Specifically, the bank is trying to increase dividends, and is aiming for a cost-income ratio of about 55% by 2016 amid efforts to increase revenue.  CEO Stuart Gulliver said that difficult economic environment in Europe and slower-than- expected growth in China have taken their toll.  Thus the bank would "continue to exert tight cost discipline while streamlining processes and procedures."

HSBC's plan is to focus on commercial banking in Asia and Latin America, relying on the bank’s Hong Kong roots.  It also aims to gain market share in wealth management in developing markets.

"Given that revenues are quite dependent on the macro economic environment, and so are not in their control as much as costs, we think it is important for the cost structure to be as efficient as possible to allow them to deliver solid earnings." -- Priyanka Agnihotri, Sanford Bernstein analyst.

For further details, go to [Dealbook, 5/16/13] and [Dealbook, 5/15/13].