Citigroup to make HK$8,000 payments to help staff hurt by coronavirus pandemic

Citigroup is one of several banks that have offered support to staff to help weather the economic effects of pandemic

Payments come as lenders offer to pause planned job cuts, roll out incentives to support clients, businesses

3-MIN READ3-MIN

Citigroup and other global lenders are offering financial support and other incentives to help their staff overcome the hardship caused by global coronavirus pandemic. Photo: Bloomberg

Published: 2:15pm, 1 Apr 2020Updated: 8:53pm, 1 Apr 2020

Citigroup offered to make a one-time payment this month to its lowest paid staff in Hong Kong to help them overcome financial hardships as the coronavirus pandemic pushes the global economy into a recession.

Staff members whose annual base salary is HK$470,000 (US$60,622) or less would receive a special payout of HK$8,000 this month, Citi said on Wednesday. It is part of the bank’s announcement last week of one-time payments to 75,000 staff globally, including US$1,000 each to its lowest-paid workers in the US.

“This initiative is for colleagues who are more likely to face economic hardship in the current situation,” Angel Ng Yin-yee, Citi’s Hong Kong and Macau chief executive, said. “We hope that our support will help lighten their load as they cope with other challenges and family priorities during this time.”

Citi joined other financial groups like JPMorgan Chase and Bank of America, who have offered special payments or incentives to help their employees weather the unprecedented crisis. They include allowing staff who are sick or unable to work time off without having to use their annual leave.

The health crisis has already inflicted a steep cost for lenders and investors alike, as bank stocks tumbled. Citigroup’s shares have lost 47 per cent this year. Both HSBC and Standard Chartered shares slumped on Wednesday after they greed to cancel their dividends and suspend share buy-backs following a request by UK regulators.

The coronavirus, which causes the Covid-19 disease, has infected more than 844,000 people worldwide and forced governments from Hong Kong to the UK to urge businesses to allow staff to work away from offices to stem the spread. About 65 per cent of its staff in Hong Kong continue to work from home, Citi said.