HSBC says ‘no pressure’ to move HQ out of UK despite prospect of higher bank taxes
Summary
HSBC CFO Pam Kaur said the bank has no plans to move its headquarters from the UK, despite expected increases in bank taxes. HSBC reported higher third-quarter profits, while its shares fell amid investor concerns about its outlook for income from interest.Key Facts
- HSBC’s third-quarter profit rose 32% to $9.6 billion.
- The bank plans to return $2.7 billion to shareholders through dividends and share buybacks.
- Kaur said moving HSBC’s headquarters was not under consideration and that the bank would remain domiciled in the UK.
- The UK budget is expected to reverse cuts to the bank surcharge, though the article says the tax changes had not yet been announced.
- HSBC said higher interest rates, lower loan losses and smaller legal provisions helped lift quarterly profit.
- HSBC’s net interest income rose to $9.3 billion from $8.8 billion a year earlier.
- HSBC shares fell nearly 6% on Tuesday, as Kaur suggested investors may have expected a stronger forecast for net interest income.
- HSBC said its net interest income growth reflected hedging strategies and higher deposits in Hong Kong; UK deposits were flat.
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