HSBC CFO says no shareholder pressure to move headquarters from UK
HSBC chief financial officer Pam Kaur stated that there is no pressure from shareholders to move the bank’s headquarters out of the UK ahead of expected bank tax increases in the upcoming government budget.
Profits Surge Amid Tax Speculation
The banking group revealed a 32 percent rise in third-quarter pre-tax profits to $9.6bn (£7.2bn) for the period ending September 2026, alongside plans to distribute $2.7bn to shareholders through dividends and share buybacks. Earnings grew because of higher interest rates, lower expected credit losses, and smaller legal provisions compared to the previous year. Net interest income rose to $9.3bn, up from $8.8bn a year earlier, driven by hedging strategies and deposit growth in Hong Kong while UK deposits remained flat.
Despite the profit surge, HSBC shares fell 5.4 percent on Tuesday, causing the lender to lose its status as the largest company on the FTSE 100. Kaur suggested investors may have expected stronger forecasts for net interest income. Meanwhile, domestic rivals faced sharper market reactions. The Twelfth Magpie reported that Lloyds and NatWest fell more than two percent following reports that Chancellor John Healey may raise the bank surcharge from 3 percent to 8 percent.
Political and Industry Divisions Over Bank Levies
The prospect of a revised bank surcharge has divided political figures and industry lobbyists. Chancellor John Healey is expected to reverse previous Conservative tax cuts in Wednesday’s budget to fund public spending measures, according to The Independent. Trades Union Congress general secretary Paul Nowak argued that the results demonstrate lenders can comfortably shoulder higher taxes, stating that banks should contribute more to support households and businesses.
Conversely, Reform UK leader Nigel Farage argued against new levies, telling City AM that UK lenders already face a tax burden of about 46.5 percent, which he described as the highest among competitor nations. While expressing personal criticism of banking sector practices, Farage cautioned that excessive rates could drive institutions out of London and make the country poorer. Industry lobby groups have similarly warned that higher bills could push major institutions to shift business and jobs to rival European financial hubs.
HSBC Remains Committed to Its UK Domicile
HSBC has twice previously weighed moving or splitting its operations in response to UK regulatory and tax pressures, including a 2015 evaluation of shifting its headquarters to Hong Kong due to a new bank levy. However, Kaur affirmed the lender’s current stance during Tuesday’s media call.
“We are very comfortable, we are domiciled in the UK and we remain in the UK. So that question is just not on the table,” Kaur said, adding that the bank remains encouraged by the government’s broader growth agenda.
The Independent noted that while international lenders with diversified geographic earnings like HSBC may possess a buffer against domestic fiscal policy, purely UK-focused institutions remain directly exposed to the pending budget announcements.