Foreign Banks Plan to Expand China Workforce by 56%, PwC Says

HSBC Holdings Plc (HSBA) and Citigroup Inc. (C) are among foreign banks in China that plan to boost their combined workforce in the country about 56 percent by 2015, according to a survey by PricewaterhouseCoopers LLP.

The banks aim to increase staff to 55,000 people in China from more than 35,000 as revenue may grow at least 20 percent annually, PwC said, citing a survey of chief executive officers, senior executives and branch managers at 41 foreign lenders. Priority positions are in corporate banking, risk management, treasury and compliance, the survey found.

Foreign lenders are struggling to expand their 1.93 percent share of the world’s third-largest banking market, citing regulatory hurdles, staff attrition and restrictions on new products as their top challenges, PwC said.

In 2011, 14 banks reported employee turnover levels of 20 percent to 40 percent, and the rate may rise further this year. Most foreign banks plan to boost salaries in the world’s second- largest economy by 8 percent to 10 percent this year, according to the survey.

To contact Bloomberg News staff for this story: Jun Luo in Shanghai at jluo6@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net

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