HSBC's bumper profits fuel calls for Budget windfall tax on banks

Summarised from 2 outlets · Updated 27 Oct, 08:32 · Archive

HSBC has reported a 32 per cent surge in quarterly profits, prompting renewed demands for a windfall tax on banks in the Budget.

HSBC has reported pre-tax profits surging 32 per cent to $9.6 billion in the third quarter, equivalent to roughly £900 a second according to The Mirror. The bank announced plans to hand out more cash to investors through a $1 billion share buyback, bringing its total profits for the year to almost £22 billion.

Chancellor John Healey is expected to increase a surcharge on banks' UK profits from 3 per cent to 8 per cent when he delivers his first Budget. The move would reverse a tax cut introduced by former Conservative chancellor Jeremy Hunt.

Banking chiefs have launched a last-ditch effort to persuade the Chancellor to ditch the increase, warning the industry is already heavily taxed compared with rival financial centres and that higher taxes will hit investment, growth and mortgage rates. However, campaigners and trade unions are calling for the tax rise to go ahead. Paul Nowak, general secretary of the Trade Union Congress, said the results make it 'blatantly obvious banks can afford to contribute more'. HSBC is not expected to be hit as hard by a higher bank levy as other lenders such as Lloyds and Natwest, because it makes most of its money outside the UK.

HSBC's bumper profits fuel calls for Budget windfall tax on banks — Image: This is Money

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How it is being reported

Left-wing demands for Budget banks raid mount as HSBC reports 32% rise in profitsChancellor John Healey has been urged to press ahead with a windfall tax on banks after HSBC posted another surge in its quarterly profits.This is Money · 27 Oct, 08:16
HSBC profits fuel calls for Budget windfall tax on banks after making £900 a secondBanking chiefs have launched a last ditch effort to persuade Chancellor John Healey to ditch a tax hike on lenders in the BudgetThe Mirror · 27 Oct, 07:52

In this story: HSBC · John Healey · Jeremy Hunt · Lloyds · Natwest · Trade Union Congress · Paul Nowak · UK

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