HSBC Malta will shed 180 members of staff this year as part of a voluntary retirement scheme announced in October, it has said.

The exercise will cost it some €16m.

"The Bank will however, benefit from ongoing cost savings in future years," it said in a statement on Monday. 

Last month HSBC announced it would close eight branches as part of a plan to increase its focus on digital banking services. The branches in Birżebbuġa, Cospicua, Fgura, Ħamrun, Marsascala, St Julian’, Qormi, Balzan and St Paul’s Bay would close while a new branch would be opened at its main office in Qormi. It also announced plans for four new wealth management centres.

The bank had said that it expected, with trade union agreement, "a reduction in roles within the organisation on a voluntary basis".

On Monday it said that the application period for the associated voluntary schemes had now closed.

"The Board is now in a position to confirm that it is expecting staffing levels to reduce by around 180 and, as a result, in the financial year ending 31 December 2019 the Bank will incur a restructuring charge of circa €16m. The Bank will however, benefit from ongoing cost savings in future years.

It said the implementation of the strategic actions announced in October will enable it to maximise the opportunities arising from changing customer usage of banks and to continue to mitigate long-term impact of negative interest rates.