HSBC says no pressure to move HQ as UK bank tax looms

Headquarters stance

HSBC's chief financial officer, Pam Kaur, said there was no pressure to relocate the bank's headquarters from the UK, particularly from shareholders in its Hong Kong market, The Guardian reported. She said the bank was comfortable being domiciled in the UK and that the question was not on the table.

The comments came before a budget expected to include higher bank taxes. The Guardian reported earlier this month that the chancellor planned to tax Britain's banks and was likely to reverse the previous government's cuts to the bank surcharge. HSBC has previously considered moving its headquarters, including in 2015 after a bank levy was introduced.

Results and market reaction

HSBC reported a 32% rise in third-quarter profits to $9.6bn, alongside plans to return $2.7bn to shareholders through dividends and buybacks. Profit was boosted by higher interest rates, lower loan losses and smaller legal provisions than a year earlier, according to The Guardian.

Net interest income rose to $9.3bn from $8.8bn a year earlier. Despite the profit increase, HSBC's UK-listed shares fell 5.4% on Tuesday and the bank lost its status as the biggest company on the FTSE 100. Kaur suggested investors may have expected stronger net interest income forecasts.

Tax debate

The Trades Union Congress said the results showed banks could afford to contribute more through taxes. The New Economics Foundation said the profits would be difficult news for households facing rising mortgage costs. HSBC said its net interest income grew due to hedging strategies and deposit growth in Hong Kong, while UK deposits stayed flat.