HSBC has fired a warning shot against higher bank taxes after revealing a surge in profits, arguing that Britain\u2019s economic recovery depends on maintaining strong lenders capable of financing business growth.<\/p>\n
The banking giant reported pre-tax profits of $19.5 billion (\u00a314.5 billion) for the first six months of the year, a 23 per cent increase on the same period in 2025 and ahead of analyst expectations.<\/p>\n
The results capped a strong earnings season for Britain\u2019s biggest high street banks, with Lloyds, Barclays and NatWest also reporting stronger profits.<\/p>\n
The bumper figures have reignited political<\/a> pressure over whether banks should contribute more to public finances. The Trades Union Congress said combined first-half profits of almost \u00a329 billion from the four major lenders represented evidence that the sector could absorb a larger tax burden.<\/p>\n The union has called for the corporation tax surcharge on banks<\/a> to rise from 3 per cent to at least 8 per cent, claiming the move could raise \u00a39 billion over four years.<\/p>\n HSBC chief executive Georges Elhedery pushed back against the prospect of further levies, arguing that a profitable banking<\/a> sector is essential to investment and economic expansion.<\/p>\n \u201cFor growth to be able to manifest, you need businesses<\/a> to be confident and invest,\u201d he said. \u201cFor businesses to invest, you need<\/a> them to have access to financing.\u201d<\/p>\n The bank announced<\/a> plans for a further $1 billion (\u00a3740 million) share buyback, while also highlighting progress on a major cost-cutting drive that has removed $1.5 billion (\u00a31.12 billion) of expenses ahead of schedule.<\/p>\n Profit growth was supported by stronger net interest income and rising fees from wealth management<\/a> and banking services. However, HSBC also reported higher expected credit losses of $2.4 billion, including a $400 million fraud-related exposure involving a UK lender and provisions linked to geopolitical risks<\/a>.<\/p>\n Elhedery said the UK economy had remained \u201coutstandingly resilient\u201d despite global shocks, including the Iran conflict and inflation pressures<\/a>.<\/p>\n