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They basically wants to ensure that HASH branches which are in the right locations for their customers and on occasions this means that they need to close those branches where customers foot fall has fallen dramatically or there has been a shift in customer shopping patterns. And also raise the transaction cost from E to E. 0 In he name of the new fees were part of a providing “clearer and more transparent pricing. ” The bank also said behind of cost cutting bank want to switching to be ‘hassle-free’ , standard IS- turn on free accounts and free banking claim is ‘ridiculous’. They also said the closures branches were a result of customers using the branch network less than they used to “we are seeing a shift to customers using phone, Internet and mobile devices. ” For this kind of reasons the HASH cope with cost cutting Q. 2. The Impacts of cost cutting on overall Financial Performance of HASH (comparison with past year)?

Answer: For the Impacts of cost cutting they have closed about 70 branches in the I-J last year and more than 50 in 2011 and in 2013, 9 branches has been closed and declared with 85 closures in UK towns and cities so far this year. The bank has closed more than 200 branches in the I-J over the last three years and Derek French, of the campaign for community banking services, expressed some surprise at Hash’s plans “These figures suggest that after a pause, they are now galloping ahead with closures, as in previous years. ” It is thought a further 20 closure announcements will e made before October.

When the branches of HASH at Alongside Penumbras and Conway- which is the only bank in the town with a cash machine are due to closed in February, 2013. Town leaders criticized the decision and called for the bank to reconsider the closing branches. Some of their state PM And Alongside the town mayor Bob Label said the closure was “terrible news” for residents, business and tourists. And he Explained the impacts over economy by saying “l am very surprised by what the bank is claiming about the economic viability of Alongside branch in IEEE of the huge number of tourists who visit our town, especially during the summer months. So, all of them when the bank branches are closed their political members realized the regional economical condition is under threat. Also the impact on increase its charges for 700,000 small business customers, with many losing their free banking service. They said new fees were part of an overhaul of accounts aimed at providing “cleared, more transparent pricing. ” Minimizing plan for cost cutting they increased fees of transaction as a result the small business customers is effected. They also said some customers would see their charges reduced.

So called Free banking ‘Myth’ the bank impose some extra charges on each small business transaction. The issue of “Free banking” system sparked controversy from last year. Q. 3 The Benefits of cost cutting on the performance of HASH (I. E. NYSE and ELSE). The share pence of HASH (ELSE: HASH) (NYSE: HASH. US) fell by APP to IPPP dung early expectations. The 3% fall in its share price made it the leading loser among FETES 100 blue-chips. The bank reported profits of $22. Ban (EYE. Ban), compared with $20. Ban in 012, boosted by a range of cost-cutting measures.

In total the bank made $1. Ban in savings by, among other things, reducing Jobs as well as cracking down on the number of staff taking business-class flights. The bank currently employs 254,000 full-time staff, down from 295,000 at the beginning of 2011. In total $4. Ban has been saved since 2011 , exceeding targets set by the bank. Revenue was stable, coming in at $63. Ban compared with $61. Ban in 2012, underpinned by a “resilient” performance in the global banking & markets business, as well as growth in the commercial banking division.

Pay for chief executive Stuart Glover increased last year from $7. Mm to $mm while the bonus pool increased 6% to $3. Ban. The chief executive commented: “Our performance in 2013 reflects the strategic measures we have taken over the past three years. Today the Group is leaner and simpler than in 2011 with strong potential for growth. In 2013 we grew underlying profits by US$6. Ban, generated US $10. 1 ban in core tier 1 capital, achieved an additional IIS$I . Ban of sustainable cost- savings and declared IIS$9. Ban in dividends in respect of the year.

Our strong capital generation continues to support our progressive dividend policy and reinforces Hash’s status as one of the best capitalized banks in the world. ” Earnings per share increased from app to app while the dividend was increased from app to app. Therefore, taking into account the hit to Hash’s share price earlier, the shares may therefore trade on a PIE of 13 and offer a potential income of 4. 5% Of course, the decision to ‘buy’ ? based on those ratings, today’s results and the wider prospects for the banking sector ? remains your own decision.