HSBC REPORTS SHARP PROFIT RISE AS CAMPAIGNERS RENEW BANK TAX CALLS

HSBC reported substantial profit growth in the first half of the year, with figures differing between reports: one stated pre-tax profits of $19.5 billion (£14.5 billion), representing a 23 per cent increase, whilst another put second-quarter profits at $10.1 billion (£7.5 billion), up 60 per cent year on year. The bank announced a $1 billion share buyback programme and a second interim dividend. HSBC chief executive Georges Elhedery indicated the bank would consider increasing banker bonuses and restarting the share buyback programme, which had been paused since the previous year.

The profit announcement prompted renewed calls for increased taxation on the banking sector. The Trades Union Congress urged the government to raise the bank surcharge from its current 3 per cent, stating this could generate up to £60 billion over four years to fund a social tariff lowering energy bills for low and middle-income households. Campaign group Positive Money calculated that a windfall tax modelled on Spain's levy—targeting UK revenues above £800 million with a 38 per cent tax rate—could raise £19 billion. Positive Money noted that the four largest banks (HSBC, NatWest, Barclays and Lloyds) reported combined profits of £29.2 billion in the first six months of the year, and that bank bosses had pledged £13.7 billion to shareholders through dividends and buybacks.

Positive Money argued that £19 billion would substantially exceed the cost of proposed support measures, including a VAT cut on electricity bills, a £2 bus fare cap and business rates reductions for pubs, clubs and music venues. The campaign group called on the government to implement such a tax, stating that previous governments had resisted such measures despite public support for the policy.